Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
November 12 2012 - 6:55AM
Zacks
Utilities funds are an excellent choice for investors seeking a
steady income flow. They are also used as defensive instruments,
which protect investments during a market downturn. This is because
the demand for essential services such as those provided by
utilities remains unchanged even during difficult times. In recent
years, many funds in this category have increased their exposure to
emerging markets and unregulated companies. This has increased the
risk involved but has also generated higher returns.
Below we will share with you 5 top rated utilities 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 utilities funds, investors can click
here to see the complete list of funds.
Invesco Utilities Investor (FSTUX) seeks capital growth
over the long term. The fund invests the majority of its assets in
stocks of companies in the utilities sector or related industries.
Firms engaged in the production and distribution of gas and
electricity as well as those providing telecom services constitutes
its major investments. The utilities mutual fund has a one year
annualized return of 11.88%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.32% compared to a category average
of 1.27%.
Franklin Utilities A (FKUTX) concentrates on purchasing
equity in public utilities companies and focuses on acquiring
common stocks. More than 25% of its assets are invested in
companies that provide electricity, gas, water and communication
services. The utilities mutual fund has a one year annualized
return of 16.99%.
John Kohli is the fund manager and he has managed this utilities
mutual fund since 1998.
Gabelli Utilities AAA (GABUX) seeks appreciably high
total return. The fund invests a large share of its assets in both
domestic and foreign companies engaged in the utility businesses. A
maximum of 40% of its assets can be invested in foreign companies.
The utilities mutual fund has a one year annualized return of
14.41%.
As of June 2012, this utilities mutual fund held 283 issues,
with 3.73% of its total assets invested in National Fuel Gas
Company.
Allianz RCM Global Water (AWTAX) invests long term
capital appreciation by investing majority of its assets in utility
companies that are predominantly engaged in the water-related
business. The fund may invest in non-U.S companies including
emerging markets. This utilities mutual fund has a one year
annualized return of 25.03%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.68% compared to a category average
of 1.45%.
American Century Utilities (BULIX) seeks current income
and capital appreciation. The fund invests a large share of its
assets in securities listed on at least one index made up entirely
of electricity, natural gas, cable television, water or sanitation
services companies. The utilities mutual fund has a one year
annualized return of 17.65%.
Lynette Pang is the fund manager and he has managed this
utilities mutual fund since 2010.
To view the Zacks Rank and past performance of all utilities
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
(AWTAX): ETF Research Reports
(BULIX): ETF Research Reports
(FKUTX): ETF Research Reports
(FSTUX): ETF Research Reports
(GABUX): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research