Top Utilities Equity Funds - Mutual Fund Commentary

Today, we are featuring top-performing “Utilities" equity mutual funds, which primarily invest in equity securities of utilities, including telecom companies.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds.

2 Powerful Picks

GAMCO Global Telecom AAA (GABTX) seeks to provide investors with appreciation of capital, with current income as a secondary objective. It was incepted in November 1993.

The fund invests at least 80% of its net assets in common stocks of companies in the telecommunications industry which the fund adviser believes are likely to have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. It invests primarily in common stocks of foreign and domestic small capitalization, mid-capitalization and large capitalization issuers. The fund may invest without limitation in securities of foreign issuers and invests in securities of issuers located in at least three countries.

The fund has an expense ratio of 1.76%. As of June 2009, it has a portfolio turnover of 4%.

Mario J. Gabelli has been lead manager of the fund since February 1995. Gabelli is a Chartered Financial Analyst and is chief investment officer of Gabelli Funds.

Rydex Telecomm Inv (RYMIX) seeks capital appreciation. It was incepted in April 1998.

The fund invests in companies engaged in the development, manufacture or sale of communications services or communications equipment. It invests substantially all of its assets in equity securities of telecommunications companies that are traded in the United States. The fund may also engage in futures and options transactions, purchase ADRs and U.S. government securities and enter into repurchase agreements.

The fund has an expense ratio of 1.39%. As of September 2009, it has a portfolio turnover of 672%.

Michael P. Byrum has been lead manager of the fund since April 1998. Byrum is a Charted Financial Analyst and is president and CIO of Rydex Investments.

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