Gold and other precious metals funds are attracting renewed investor interest as market uncertainty encourages investors to seek defensive assets. According to LSEG Lipper data reported by Reuters, these funds received $4.21 billion of net inflows in the week ended Aug. 26, 2026, the highest weekly inflow in six months.
The strong inflows came as global equity funds recorded $5.87 billion of outflows, ending a 13-week streak of inflows. U.S. equity funds alone saw $22.33 billion in net withdrawals as investors turned cautious ahead of Nvidia’s earnings and Federal Reserve Chair Kevin Warsh’s Jackson Hole remarks.
Gold has also benefited from persistent geopolitical and fiscal concerns, while expectations surrounding monetary policy and continued central bank purchases have supported demand. Gold prices have gained strongly in August, although volatility remains a risk.
Precious metals funds can offer diversification when equity market risks rise, but mining stocks also carry operational, commodity-price and broader market risks. Investors should therefore consider their risk tolerance before adding these funds to a portfolio.
Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Against this backdrop, investors seeking exposure to precious metals can consider Fidelity Select Gold (FSAGX – Free Report) , Franklin Gold and Precious Metals (FKRCX – Free Report) and American Century Global Gold Investor (BGEIX – Free Report) . These funds primarily invest in companies involved in gold and precious metals mining, providing leveraged exposure to metal prices through equities. These boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, and carry a low expense ratio.
Fidelity Select Gold primarily invests in gold-related companies and precious metals, focusing on firms involved in exploration, mining, processing and dealing, while remaining non-diversified.
Boris Shepov has been the lead manager of FSAGX since 2024. Three top holdings of FSAGX are Newmont (11.4%), Agnico Eagle Mines (11.3%) and Wheaton Precious Metals (9.2%).
FSAGX’s 3-year and 5-year annualized returns are 33.8% and 14.6%, respectively. Its net expense ratio is 0.64%. FSAGX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Franklin Gold and Precious Metals invests primarily in global gold and precious metals companies, with a focus on non-U.S. firms and significant exposure to small- and mid-cap stocks.
Steve M. Land has been the lead manager of FKRCX since 1999. Three top holdings of FKRCX are Newmont (5.5%), G Mining Ventures (5.2%) and Alamos Gold (4.9%).
FKRCX’s 3-year and 5-year annualized returns are 44.2% and 18.8%, respectively. Its net expense ratio is 0.83%. FKRCX has a Zacks Mutual Fund Rank #1.
American Century Global Gold Investor (BGEIX – Free Report) typically invests in companies involved in gold mining, processing, exploration, distribution and related activities, and maintains a non-diversified portfolio.
Mattia Bacciardi has been the lead manager of BGEIX since 2025. Three top holdings of BGEIX are Newmont (8.6%), Agnico Eagle Mines (6.2%) and Kinross Gold (5.7%).
BGEIX’s 3-year and 5-year annualized returns are 37.2% and 17.6%, respectively. Its net expense ratio is 0.66%. BGEIX has a Zacks Mutual Fund Rank #2.
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