Top 5 Zacks #1 Ranked Precious Metals Funds - Best of Funds
July 05 2012 - 12:59PM
Zacks
Investors often seek solace in precious metals instruments
during a downturn. These investments are considered to be a natural
hedge against a rapidly declining currency. Even a small portion of
precious metals in a portfolio can provide significant protection
against inflation. In addition, when markets are slowing down,
securities related to these industries acquire greater
significance. At such times they provide better returns than equity
securities, even outperforming them. Precious metals funds are the
best option for investing in this sector since they possess the
advantages of professional insight and well-diversified
portfolios.
Below we will share with you 5 top rated precious metals mutual
funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect
the fund to outperform its peers in the future. To view the
Zacks Rank and past performance of all precious metals funds,
investors can click here to see the complete list of funds.
Midas (MIDSX) invests at least 65% of its assets are
invested in companies involved in the mining, processing and
distribution of precious metals. Up to 35% of its assets may be
invested in companies deriving a share of its revenues from the
precious metals sector. The precious metals fund has a ten year
annualized return of 5.24%.
Thomas B. Winmill is the fund manager and has managed this
precious metals fund since 2002.
U.S. Global Investors Gold and Precious Metals (USERX)
seeks capital appreciation over the long term. The fund invests a
large proportion of its assets in companies whose primary
operations are related to gold and other precious metals. The
precious metals fund has a ten year annualized return of 11.5%.
As of December 2011, this precious metals mutual fund held 79
issues, with 5.25% of its total assets invested in Randgold
Resources, Ltd. ADR.
Gabelli Gold AAA (GOLDX) invests the majority of its net
assets in domestic and foreign companies which engage in
gold-related activities. A substantial portion of the fund’s assets
are utilized to purchase foreign securities. The precious metals
fund has a ten year annualized return of 11.89%.
The precious metals mutual fund has a minimum initial investment
of $1,000 and an expense ratio of 1.46% compared to a category
average of 1.40%.
OCM Gold Investor (OCMGX) seeks capital appreciation. The
fund invests in domestic and foreign companies in the gold mining
industry. It focuses on purchasing common stocks and may also
invest in precious metals producers. The precious metals fund has a
ten year annualized return of 12.4%.
Greg Orrell is the fund manager and has managed this precious
metals fund since 1988.
Fidelity Select Gold (FSAGX) invests the majority of its
assets in companies whose principal operations are related to gold,
and in gold bullion and coins. Up to 25% of the fund’s assets may
be invested in gold and other precious metals through a
wholly-owned subsidiary. The precious metals fund has a ten year
annualized return of 10.55%.
The precious metals mutual fund has a minimum initial investment
of $2,500 and an expense ratio of 0.89% compared to a category
average of 1.40%.
To view the Zacks Rank and past performance of all precious
metals mutual funds, investors can click here to see the complete
list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
(FSAGX): ETF Research Reports
(GOLDX): ETF Research Reports
(MIDSX): ETF Research Reports
(OCMGX): ETF Research Reports
(USERX): ETF Research Reports
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