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3 Top-Ranked Energy Mutual Funds Worth Betting On

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The ongoing war in the Middle East 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., Fidelity Select Energy Portfolio (FSENX - Free Report) , Fidelity Advisor Energy Fund (FAGNX - Free Report)  and T. Rowe Price New Era (PRNEX - 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.

Fidelity Select Energy 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 fund has three-year annualized returns of 4.3%. As of February 2025, FSENX held 35 issues, with 24.8% of its assets invested in Exxon Mobil Corporation.

Fidelity Advisor Energy Fund invests most of its net assets in 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. FAGNX advisors choose to invest in companies using fundamental analysis techniques such as the issuer's financial condition, industry position, market and economic conditions.

Fidelity Advisor Energy Fund has three-year annualized returns of 3.7%. FAGNX has an expense ratio of 1.23%.

T. Rowe Price New Era fund invests the majority of its net assets in common stocks of natural resource companies that have earnings and tangible assets of natural resources companies, which may benefit from periods of increasing inflation. PRNEX advisors also invest other growth companies that have strong potential for earnings growth.

T. Rowe Price New Era fund has three-year annualized returns of 2.7%. Shinwoo Kim has been the fund manager of PRNEX since June 2021.

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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