Investors often gain comfort from precious metals instruments during difficult economic conditions. Securities from this industry are utilized as a natural hedge against a rapidly declining currency. The presence of even a small portion of precious metals in a portfolio can provide sufficient relief from inflationary pressures. Precious metals mutual 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 these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all precious metals funds, then click here.
First Eagle Gold A (SGGDX) invests the majority of its assets in gold and related securities or companies with substantial operations in this sector. Up to 20% of its assets are utilized to purchase debt securities regardless of their quality. The precious metals mutual fund returned 23.76% in the last one year period and has a five year annualized return of 20.59%.
The precious metals mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.26% compared to a category average of 1.49%.
GAMCO Gold AAA (GOLDX) seeks capital growth over the long term. At least 80% of the fund’s assets are invested in domestic and foreign companies which engage in gold-related activities. A substantial portion of its assets are utilized to purchase foreign securities The precious metals fund has a three year annualized return of 11.36%.
Caesar M.P. Bryan is the fund manager and he has managed this precious metals mutual fund since 1994.
RiverSource Precious Metals & Mining A (INPMX) invests at least 80% of its assets in precious metals or mining companies. At least 65% of its assets are utilized to purchase securities issued by precious metals related companies. The precious metals mutual fund returned 21.52% in the last one year period.
The precious metals mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.43% compared to a category average of 1.49%.
Rydex Precious Metals (RYPMX) seeks capital appreciation by investing in precious metals companies which are traded in the U.S. The fund primarily seeks to acquire equity securities and derivatives. The precious metals mutual fund returned 20.39% in the last one year period and has a ten year annualized return of 13.99%.
As of July 2010, this precious metals mutual fund held 31 issues, with 14.16% of its total assets invested in Freeport-McMoRan Copper & Gold B.
Invesco Gold & Precious Metals Investor (FGLDX) invests heavily in equity securities of gold and precious metals companies. Equity securities constitute its major investments and the fund may purchase without limit foreign securities of firms from the precious metals industry. The precious metals mutual fund has a ten year annualized return of 19.91%.
Andrew Lees is the fund manager and he has managed this precious metals mutual fund since 2008.
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.
