Top Mutual Fund in Utility Sector

Filed in archive Mutual Funds on January 23, 2012

© Tracy O

For investors seeking a steady income flow, utilities funds can be an excellent choice. These funds are great defensive instruments to protect capital during a market downturn, because the demand for essential services like utilities remains unchanged during difficult times. The top mutual fund in this category is the Fidelity Advisor Utilities A (FUGAX), which seeks capital growth.

The fund invests most of its assets in public utility companies as well as firms that derive a large share of revenues from related operations. It purchases both domestic and foreign securities, and returned 17.68% over the last one year period with a ten year annualized return of 3.87%. Douglas Simmons has managed this fund since 2006. The Invesco Utilities Investor (FSTUX) fund also invests a large share of its assets in stocks of companies in the utilities sector or related industries. It concentrates on firms engaged in the production and distribution of gas and electricity.