3 Energy Mutual Funds to Buy Now for Great Returns

The ongoing 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 the energy equities is likely to help in the near term.

Below we share with you three top-ranked energy mutual funds, viz., PGIM Jennison MLP Fund-Class A PRPAX, Calvert Global Energy Solutions Fund Class A CGAEX and Cohen & Steers MLP & Energy Opportunity Fund, Inc. MLOAX. 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.

PGIM Jennison MLP Fund-Class A seeks to provide total return through a combination of current income and capital appreciation by investing the majority of its investable assets in master limited partnerships (MLPs) and MLP-related investments (together, MLP investments). PRPAX also aims to borrow money for non-investment purposes, such as to meet anticipated redemptions.

PGIM Jennison MLP Fund-Class A has three-year annualized returns of 6.8%. As of May 2022, PRPAX held 27 issues, with 11.3% of its assets invested in TARGA RESOURCES CORPORATION.

Calvert Global Energy Solutions Fund Class A seeks to track the performance of the Calvert Global Energy Research Index by concentrating on the sustainable energy solutions industry. CGAEX invests the majority of its net assets in equity securities of U.S. and non-U.S. companies.

Calvert Global Energy Solutions Fund Class A has three-year annualized returns of 22%. Thomas Seto has been one of the fund managers of CGAEX since 2016.

Cohen & Steers MLP & Energy Opportunity Fund, Inc. invests the majority of its net assets in Master Limited Partnerships and related companies. MLOAX, a non-diversified fund, also invests in foreign securities.

Cohen & Steers MLP & Energy Opportunity Fund, Inc. has three-year annualized returns of 7.9%. MLOAX has an expense ratio of 1.25% compared with the category average of 1.56%.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.