FXSTD – Alternative Energy Center

By: Rex Camposagrado
Featuring top-performing Energy equity mutual funds, which primarily invest in equity securities of energy and/or natural resources companies.

Investors can find such energy funds by checking out the entire list of the Zacks #1 Rank Energy Equity Funds

3 Energizing Picks

Aim Energy Inv (FSTEX) seeks capital growth. It was incepted in January 1984.

The energy fund invests primarily in energy companies, which include international oil companies, oil and gas exploration/production, oil service companies, pipeline companies, refiners, coal companies, and alternative energy providers. The energy fund's portfolio focuses on reasonably priced companies with above-average production volume growth, as well as earnings, cash flow, and asset value growth potential independent of commodity pricing.

This energy fund has an expense ratio of 1.16%. As of September 2009, it has a portfolio turnover of 122%.

Andrew Lees has been lead manager of the fund since May 2008. Before joining Invesco AIM in 2005, Lees was director of investment banking for Trinity Capital Services, LLC.

Munder Energy A (MPFAX) was incepted in March 2001. This energy fund seeks long-term capital appreciation.

The energy fund pursues its goal by investing in equity securities of U.S. and non-U.S. companies considered by the portfolio managers of the fund to significantly benefit from or derive revenue from non-regulated energy or power-related activities. It invests in small, medium, and large capitalization companies. This top energy fund may invest without limit in IPOs.

The energy fund has an expense ratio of 1.83%. As of September 2009, it has a portfolio turnover of 58%.

Brian Kozeliski has been lead manager of the energy fund since February 2009. Kozeliski is a Chartered Financial Analyst and is a portfolio manager with Munder Capital Management

Rydex Energy Inv (RYEIX) seeks capital appreciation. It was incepted in April 1998.

This energy fund invests in companies involved in the energy field, including the exploration, production, and development of oil, gas, coal and alternative sources of energy. It invests substantially all of its assets in equity securities of energy companies that are traded in the United States. The fund invests substantially all of its assets in equity securities of energy companies that are traded in the United States. The energy fund may also engage in futures and options transactions, purchase ADRs and U.S. government securities, and enter into repurchase agreements.

Shareholders have to make a minimum initial investment of $2,500 to enter this Zacks #1 Rank ("Strong Buy") fund. It has an expense ratio of 1.37%.

Michael P. Byrum has been lead manager of this energy fund since April 1998. Byrum is a Chartered Financial Analyst and is president and CIO of Rydex Investments.

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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.