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Buy These 3 Energy Mutual Funds for Scintillating Returns

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The recent war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the prevailing war between Russia and Ukraine has prompted several governments, including the Biden administration, to impose sanctions on Russian oil and energy.

Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. Government imposed a ban on the import of oil and other energy products.

Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is likely to help in the near term.

Below, we share with you three top-ranked energy mutual funds, viz., BNY Mellon Natural Resources Fund (DNLAX - Free Report) , Invesco SteelPath MLP Select 40 (MLPFX - Free Report) and Fidelity Natural Resources Fund (FNARX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.

BNY Mellon Natural Resources Fund invests most of its assets in securities of domestic and foreign companies, including ones in emerging markets, with major exposure in natural resources and natural-resources-related sectors, irrespective of any market capitalization. DNLAX advisors choose to invest in growth and value stocks.

BNY Mellon Natural Resources Fund has three-year annualized returns of 17.7%. As of March 2024, DNLAX held 40 issues, with 4.8% of its assets invested in Freeport-McMoran.

Invesco SteelPath MLP Select 40 invests most of its net assets in master limited partnerships and MLP-related securities. It primarily invests in issuers that are engaged in the business of transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources.

Invesco SteelPath MLP Select 40 has three-year annualized returns of 20.3%. Stuart Cartner has been one of the fund managers of MLPFX since March 2010.

Fidelity Natural Resources Fund (FNARX - Free Report) primarily invests in the common stocks of companies that own or develop natural resources and in precious metals. FNARX advisors use fundamental analysis of factors like each issuer's financial condition and industry position, as well as market and economic conditions to arrive at their investment decision.

Fidelity Natural Resources Fund has three-year annualized returns of 21.7%. FNARX has an expense ratio of 0.76% compared to the category average of 1.27%.

To view the Zacks Rank and the past performance of all energy mutual funds, investors can click here to see the complete list of energy mutual funds.

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