Some people who want to invest in mutual funds are quite happy to invest in balanced funds that take in all manner of different companies. But others want to invest in specific funds with a theme, such as oil mutual funds for example. Oil mutual funds tend to be quite popular because their returns are generally rather good when compared to other funds.
If you are interested in this particular area, it is wise to do a spot of research to see what kinds of oil funds are out there to invest in. Obviously there are many of them and while we have provided a list of some of them below, this should not be treated as an exhaustive list. Indeed you should make your own decisions and look into each one carefully before investing. The same applies for looking at other oil mutual funds in case you prefer those you find elsewhere.
If you want an average return of around 14% or more each year, this could be the ideal place to look. This is one oil fund that has weathered the storm of the recession rather well, even when other funds were struggling. This alone could give you serious reason to consider Vanguard.
Fidelity Select Energy Services
The idea with this fund is to get capital growth. If this is on the cards for you, explore it in more detail. It is a typical example of how an oil mutual fund has gone from strength to strength thanks to the increasing prices given to oil.
This is another oil mutual fund that has been progressing well. It didn’t do as well in 2011 as it has this year, but having said that it still outperformed many basic savings accounts, so you have to consider what to expect. It could be a good possibility for the year ahead.
ProFunds UltraSector Oil and Gas Investor
It may have a long title but the name of the game is to achieve a steady growth over time. And this particular mutual fund has managed to do just that, providing more than 9% in returns over the past decade.
Are you going to pick one or more mutual funds to invest in?
Of course the main idea is to spread your risk as much as possible. Thus you may wish to invest in more than one oil mutual fund if this is the area that concerns you. Consider how much you have to invest and what you expect to gain from that investment. This should help you work out whether you want to invest in more than one mutual fund and whether you want all of them to be involved in the oil industry.
Clearly many people pick oil mutual funds simply because they have the potential to deliver a reasonably reliable improvement each year. But regardless of your reasons to invest in them, the suggestions above should help you choose your ideal fund.