Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector.
Below we will share with you 4 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.
American Century Global Gold Investor (MUTF:BGEIX) invests in securities of global companies whose operations are related to gold or other precious metals. BGEIX invests a lion's share of its assets in companies which are involved in processing, mining, fabricating and distributing gold or other precious metals. BGEIX invests in companies with the purpose of attaining growth in capital and dividends. The American Century Global Gold Investor fund is non-diversified and returned 6.2% this year.
BGEIX has an expense ratio of 0.67% as compared to category average of 1.41%.
Vanguard Precious Metals and Mining Investor (MUTF:VGPMX) seeks long-term capital growth. VGPMX invests most of its assets in domestic and foreign companies that are mainly involved in mining, processing and distribution of precious and rare metals or minerals. VGPMX may invest all of its assets in non U.S. companies. A maximum of 20% may be directly invested in gold and silver among other precious metal bullions. The Vanguard Precious Metals and Mining Investor fund is non-diversified and returned 6.3% this year.
As of March 2015, VGPMX held 55 issues with 7.18% of its assets invested in Dominion Diamond Corp.
Fidelity Select Gold Portfolio (MUTF:FSAGX) invests heavily in companies whose principal operations are related to gold as well as in gold bullion or coins. A maximum of 25% of FSAGX's assets are invested in precious metals via a wholly owned subsidiary. FSAGX focuses on acquiring common stocks of firms involved in exploration, mining, processing, or dealing in gold, or to a lesser degree, in silver and other precious metals. The Fidelity Select Gold Portfolio fund is non-diversified and returned 6.8% this year.
Joe Wickwire is the fund manager and has managed FSAGX since 2007.
First Eagle Gold A (MUTF:SGGDX) seeks to derive return by investing in gold. SGGDX invests a large chunk of its assets in gold or securities of companies that operate within the gold industry. SGGDX may also invest, to a lesser extent, in other precious metals. The First Eagle Gold A fund is non-diversified and returned 4.2% this year.
As of March 2015, SGGDX held 33 issues with 19.76% of its assets invested in Gold Commodity in Ounces.