Before we start on the top 3 Gold Mutual Funds, let me tell you why it is important to consider gold mutual funds at this time. Gold has always been proven as the best method of preserving value when a national currency is in trouble. Unfortunately, as we all know, the dollar is losing its value as we speak. It makes sense that allocating a portion of your hard earned money in gold mutual funds is similar to getting a financial insurance policy.
Morningstar, the highly respected and independent investment research company, states that gold mutual funds are riding a multi-year bull market. They dominate the list of top-performing sector funds over the past three, five and 10 years. Is that exciting or what?
Having said that, its important to note that some gold funds are more aggressive, while others may take a very conservative approach. It is very important to consider the type of approach that will fit your objectives and to be realistic. What is your own personal risk tolerance level?
When choosing mutual funds its important to consider not only the return and the risk factor, but also the fund fees and the expenses. Running any mutual fund is expensive. Starting with all of the investment advisory fees, marketing and distribution expenses, and the shareholder transaction costs, it is not surprising that the mutual fund company might want to pass the expenses right on down to you! This happens, of course, in all mutual funds, not just the gold mutual funds. I am choosing then the mutual funds based not only on the return and risk factors but also on the fees passed along to the consumer as well.
The top fund I recommend is the Tocqueville Gold Fund (TGLDX). The manager of this gold fund is John Hathaway. The fund has gone up an incredible 48percent over the past year and has an average annual return of 26 % over the past 10 years. This fund also makes the list of Zacks Investment Research’s “Top 5 precious Metal Funds.” Anytime you see a fund on Zack’s list you can bet that they will outperform their peers in the future. Going back to expenses, this is a no load fund. A no load fund means that the investment company is not charging a sales charge. The word load is synonymous with the word commission.
The second gold mutual fund in the top three has to be First Eagle Gold Fund (SGGDX). Morningstar rates it five stars! The fund normally invests at least 80 % of total assets in gold and /or securities directly related to gold or of issuers principally engaged in the gold industry. The fund has returned 19.80 % over the past year, 15.62 % over the past three years, 19.99 % over the past five years, and 27.95 % over the past decade and has an expense ratio of 1.26 %.
The last one in the top three is The Invesco Gold and Precious metals funds (FGLDX). Even though it is not a super star, it will satisfy anyone that has a low risk tolerance and that is why its in the top three. The fund is no slouch though. It has returned a 25.64 % over the past year, 20.60 % over the past five years and 24.55 % over the past decade. It has also made the list of Zacks Investment Research’s “Top 5 Precious Metals Funds.” The expense ratio is 1.29 % which is below average and Morningstar rates it as a very low risk investment. When Morningside talks, everyone listens! Also, Standard & Poor’s the United States based financial services company that traces its own history to as far back as the 1860′s, rates The Invesco Gold and Precious Metals Funds with four stars. Here they are. What are you waiting for? Start investing!
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