3 Zacks Rank #1 Precious Metals Funds to Buy Now - Mutual Fund Commentary

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. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past. 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 3 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.

Vanguard Precious Metals and Mining Investor (VGPMX) seeks long-term capital growth. It 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. It 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. This non-diversified precious metals fund returned 1.5% over the last one year period.

The fund has an expense ratio of 0.25% as compared to category average of 1.42%.

Franklin Gold and Precious Metals A (FKRCX) invests a lion's share of its assets in companies engaged in operations related to gold and precious metals. The fund mostly invests in non US companies irrespective of their market capitalizations. It may also invest in ADRs and other depositary receipts. This non-diversified precious metals fund returned -2.9% over the last one year period.

Steve M. Land is the fund manager and has managed this fund since 1999.

Van Eck Global Hard Assets A (GHAAX) seeks capital growth over the long run. It invests a major portion of its assets in companies and other securities whose operations are related to “hard assets”. These “hard assets” comprise gold and other precious metal, industrial metal, and energy among others. This non-diversified fund may invest a maximum of 20% in investment companies, which may also include ETFs. This precious metals fund returned 11% over the last one year period.

As of April 2014, this fund held 61 issues with 4.85% of its assets invested in Glencore PLC.

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 in our Mutual Fund Center.