Buy These 3 Top-Ranked Energy Mutual Funds for Outstanding Returns
Oil mutual funds present an attractive opportunity in the current scenario. With global energy demand steadily rebounding, oil prices remain well-supported despite market volatility. Geopolitical tensions, supply constraints from OPEC+ cuts, and underinvestment in new oil projects have created a favorable supply-demand imbalance. At the same time, inflationary pressures make commodities, including oil, a strong hedge against eroding purchasing power.
In an inflationary environment, oil serves as a good hedge. While the long-term trend is toward clean energy, the transition will take decades, ensuring oil remains vital to the global economy. Oil mutual funds offer a way to invest in this critical sector and benefit from strong company earnings, dividends and share buybacks without the risk of picking individual stocks. For investors seeking growth, diversification and inflation protection, oil mutual funds offer a timely and strategic investment choice in today’s uncertain economic environment.
Below, we share with you three top-ranked energy mutual funds, viz., Victory Global Energy Transition RSNRX, Fidelity Select Energy Portfolio FSENX and Franklin Natural Resources FRNRX. 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.
Victory Global Energy Transition fund invests most of its assets in securities of companies that the sub-adviser considers are principally engaged in natural resources industries required for Energy Transition, to develop zero-carbon energy systems and expand access to affordable, sustainable energy services.
Victory Global Energy Transition has three-year annualized returns of 30.4%. As of the end of June 2026, RSNRX had 29 issues and invested 9.8% of its net assets in Compass Minerals International, Inc.
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 18.2%. FSENX has an expense ratio of 0.64%.
Franklin Natural Resources fund invests its net assets in equity and debt securities of natural resources companies, predominantly equities.