One of the primary advantages of adding precious metals to a portfolio is diversification. This is because their value tends to appreciate when the dollar is in the doldrums and also when stocks are facing choppy weather. Mutual funds focusing on precious metals are a cost effective method of investing in these commodities. In fact, their expense ratios are lower than those incurred by other investments, as well as most mutual funds This is why mutual funds are the easiest and safest way to invest in precious metals.
Below we will share with you the 5 best performing precious metals mutual funds year to date. To view the Zacks Rank and past performance of all precious metals mutual funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Tocqueville Gold | #1 Strong Buy | 13.7% |
| Oppenheimer Gold & Spec Min A | #1 Strong Buy | 10.1% |
| Franklin Gold and Precious Metals A | #1 Strong Buy | 9.4% |
| Van Eck International Investors Gold A | #2 Buy | 9.3% |
| American Century Global Gold | #1 Strong Buy | 7.7% |
Tocqueville Gold (TGLDX) invests the majority of its assets in gold or companies involved in mining or processing of gold worldwide. The fund may also consider other precious metals for investment purposes. Up to 20% of its total assets may be invested directly in gold bullion and other precious metals. The precious metals mutual fund has a three year annualized return of 14.69%.
The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.50% compared to a category average of 1.49%.
Oppenheimer Gold & Special Minerals A (OPGSX) seeks long-term capital growth. It invests primarily in domestic and foreign companies whose major operations include mining, processing or dealing in metals and minerals. At least 25% of its assets are invested in mining securities and metal investments. It is non-diversified and has a ten year annualized return of 23.6%.
The Fund Manager is Shanquan Li and he has managed this precious metals mutual fund since 1997.
Franklin Gold & Precious Metals A (FKRCX) invests a large proportion of its assets in gold and precious metals or companies involved in mining or processing of these metals worldwide. The precious metals mutual fund returned 38.02% in the last one year period and has a ten year annualized return of 22.04%.
As of June 2010, this precious metals mutual fund held 81 issues, with 6.72% of its total assets invested in Randgold Resources, Ltd. ADR.
Van Eck International Investors Gold A (INIVX) seeks capital appreciation over the long term. It invests the majority of its assets are invested in companies whose major operations primary operations consist of activities related to gold. The precious metals mutual fund returned 40.24% in the last one year period.
The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.43% compared to a category average of 1.49%.
American Century Global Gold (BGEIX) invests at least 80% of its assets in companies dealing in gold. This includes firms whose primary operations include mining, processing and exploration activities. It is non-diversified and a no load fund.
The precious metals mutual fund has a five year annualized return of 18.48%.
To view the Zacks Rank and past performance of all precious metals funds, then click here.
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/mutualfund/
