- Global natural resources no load mutual funds can be a good investment for some, but may not be ideal for others
- Global natural resources funds tend to be heavy in the energy sector, but this is not true of all these funds
- The best no load funds have high ratings and low expenses
Global natural resources no load mutual funds are one type of mutual fund investment that may be ideal for many investors. Global natural resources funds invest mainly in companies that extract natural resources, and those companies which provide support, like services and products, that help in the natural resource extraction. These mutual funds can offer a number of benefits to investors, but there may be disadvantages to these investments as well. Many of these no load mutual funds may be very energy heavy, with portfolios that contain large amounts of energy investments and are not diversified enough to hedge sufficiently against risks. This can be avoided by doing thorough research, and not choosing global natural resources funds which hold large amounts of energy investments. Instead choose funds that invest in raw resources instead of energy, or that do not have a majority of investments in the energy sector. The risk levels and possible returns will be different for each specific fund, so make sure to be thorough in your research, and to evaluate all possible no load mutual funds completely before choosing the right ones. This will help avoid any funds which have highly volatile investments or funds which take large risks that are not acceptable.
Global natural resources funds are used by many investors to help diversify their investment portfolio and hedge against risks, and when the right funds are chosen this may work very well. One of the best no load funds for many investors is the Fidelity Select Materials Fund, which trades with the ticker symbol FSDPX. Offered by Fidelity Investments, this fund has net assets worth close to two hundred million dollars. Morningstar rates this fund as four stars, proving that it is one of the best no load funds out there for investors interested in global natural resources. The fund was started in 1986, and has a solid performance history. The initial minimum investment required is only twenty five hundred dollars, making these fund very accessible. The lead manager of the fund, Tobias W. Welo, has been with Fidelity since 2005, and has an excellent track record. Capital appreciation is the goal of this fund, but it may not be right for all investors because it does not hold a diversified portfolio.
The Ivy Global Natural Resources I fund, ticker symbol IGNIX, may be another global natural resources fund for many investors. Considered one of the best no load funds out there for natural resource investments around the globe, this fund has close to two hundred million dollars in net assets. It is offered by Ivy Funds, and is managed by Frederick Sturm. The fund specializes in large blend investments, and has a good track record. The main goal of the fund is to make investments which offer growth over the long term. No matter which global natural resources no load funds you finally choose, whether it is Fidelity Select Materials Fund, the Ivy Global Natural Resources I fund, or a different fund, there are some things to consider when choosing no load mutual funds. These funds do not include professional advice like load funds do, so you must find, research, and evaluate possible funds on your own. The advantage of this is that you will not pay five percent or more of your investment capital or returns for investment advice that you do not need. These funds can be a great way to minimize investment expenses so that the returns you get are higher. There are many no load funds which invest in global natural resources to choose from, and each will have unique risks and returns.
June 15th, 2009 at 9:46 pm
There are several good points here. Considering the global focus on all things “green”, it would seem that the value of these fund shares will only get better. But the energy game is a volatile one – anyone remember Enron? What I like best about these funds are the very low initial investment. It’s hard to lose much with a $2500 bet in today’s market in these kinds of low activity shares.