Best Natural Gas Mutual Funds To Invest In

Natural Gas Mutual Funds

Natural gas mutual funds can be a good investment right now because of the increase in energy prices around the world. Some mutual fund companies specialize mainly in natural gas holdings, while others may only have a section of the fund portfolio for this investment type. United States Natural Gas Fund, symbol UNG, is considered one of the top funds in the natural gas sector. With more than two billion in assets this fund is definitely one to watch. Another top contender is Fidelity Select Natural Gas, symbol FSNGX. This fund has close to one hundred percent of the holdings in stocks, and these stocks are from companies in the energy sector. Natural gas mutual funds can help diversify a portfolio of other holdings though, and these funds are expected to continue increasing in value over the long term.

If you are not sure of which fund to chose you may want to seek mutual funds investment advice from a professional advisor, but for most investors this is not needed and can be a waste of money. Choosing natural gas mutual funds is not the right choice for every investor, due to different goals, strategies, and risk levels involved. Alternative energy mutual funds are another highly popular choice, because of the potential reward in the future.

The best natural gas mutual funds are ones which fit well with your investment style, goals, and strategy used. Avoid funds which charge a load fee, because this means some of your capital is being used to pay for these commissions instead of earning money for you. No load funds are a better choice, and some investors choose both green mutual funds and those involved in more traditional forms of energy. This offers the best of both worlds for an investor, and can help lower your risks involved. With high oil prices natural gas may be turned to more and more as an alternative and these funds can offer many benefits for some investors.