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Grab These 3 Energy Mutual Funds for Rewarding Returns

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The war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. 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 rose 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 energy mutual funds, viz., Eagle MLP Strategy Fund (EGLAX - Free Report) , Invesco SteelPath MLP Income Fund (MLPDX - Free Report) and Fidelity Select Energy Portfolio (FSENX - 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.

Eagle MLP Strategy Fund invests most of its net assets in master limited partnerships and MLP-related securities. EGLAX advisors also invest in structured notes or options that derive their returns from a basket of MLPs or other publicly traded partnerships, corporations or limited liability companies.

Eagle MLP Strategy Fund has three-year annualized returns of 34%. As of July 2024, EGLAX held 20 issues, with 11.3% of its assets invested in Plains GP Holdings.

Invesco SteelPath MLP Income Fund invests the majority of its assets along with borrowings, if any, in master limited partnership investments of companies that are engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLPDX advisors also invest in derivatives and other instruments that have similar economic characteristics.

Invesco SteelPath MLP Income Fund has three-year annualized returns of 27.1%. MLPDX has an expense ratio of 1.37% compared with the category average of 1.37%.

Fidelity Select Energy Portfolio fund invests most of its net assets in common stocks of domestic and foreign companies that are principally engaged in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FSENX advisors choose to invest in companies based on fundamental analysis factors such as financial condition, industry position, and market and economic conditions.

Fidelity Select Energy Portfolio fund has three-year annualized returns of 24%. Maurice FitzMaurice has been one of the fund managers of FSENX since January 2020.

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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