Oil mutual funds present an attractive opportunity in the current scenario as global oil markets remain highly sensitive to geopolitical tensions in the Middle East and supply disruptions due to the blockade of the Strait of Hormuz. Crude prices have stayed volatile as major producers, including OPEC and its allies, continue managing output to balance supply and demand. Strong energy consumption from emerging economies and recovering industrial activity have supported prices, while concerns over slowing global growth and rising interest rates limit further gains. In addition, underinvestment in new exploration projects has tightened long-term supply expectations.
Investing in oil mutual funds is an attractive option for investors during uncertain economic conditions, as it provides a hedge against inflation. While the long-term trend is toward clean energy, the transition will take decades, ensuring oil remains vital for 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 Fund RSNRX, Fidelity Select Portfolio Natural Resources Portfolio Fund FNARX and U.S. Global Investors Funds Global Resources Fund PSPFX. 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 net assets in domestic and foreign companies that its sub-advisor, SailingStone Capital Partners LLC, believes are principally engaged in natural resources industries. RSNRX is a non-diversified fund.
Victory Global Energy Transition Fund has three-year annualized returns of 27.4%. As of the end of December 2025, RSNRX had 24 issues and invested 12.9% of its net assets in Compass Minerals International.
Fidelity Select Portfolio Natural Resources Portfolio Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. FNARX advisors choose to invest in issues based on fundamental analysis factors such as financial condition, industry position, as well as market and economic conditions.
Fidelity Select Portfolio Natural Resources Portfolio Fund has three-year annualized returns of 22.1%. FNARX has an expense ratio of 0.69%.
U.S. Global Investors Funds Global Resources Fund invests most of its assets, along with borrowings, if any, in equity and equity-related securities of companies involved in the natural resources industries. PSPFX advisors also invest in industries like natural gas, integrated oil companies, hard rock or oil and gas drilling, oil and gas exploration and production, oil and gas refining, oilfield equipment/services, aluminum, chemicals, base metals and specialty minerals, gold and precious metals, iron and steel, paper and forest products, etc.
U.S. Global Investors Funds Global Resources Fund has three-year annualized returns of 20.1%. Frank E. Holmes has been the fund manager of PSPFX since June 1999.
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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