Making moves to buy gold coins or bullion are not the only way to get some gold into the investment portfolio. Gold mutual funds are safe investments and allow investors to have diverse stock holdings. These funds are managed by financial professionals according to the investment goals of the fund, offering investors many choices when it comes to styles of portfolio management.
What makes these funds attractive to many investors is that the fund manager conducts the research and decides which stocks to add to the fund. The stocks represent companies that are engaged in gold mining, distribution, or processing. Some of them are backed by gold, while others do not offer any direct ownership of physical gold.
Investors earn money from dividends, capital gains, and net asset values of gold mutual funds. With a new year beginning, individuals may want to consider making an investment in what are considered the best gold mutual funds for 2011. This will allow them to start their year off on the right foot, while diversifying their portfolio.
Dynamic Gold & Precious Metals topped the list of funds that outperformed the stock market in 2010. It had an excellent year to date return of 66.99 percent. It is also a safe bet for 2011, as is Tocqueville Gold, which earned a 50.77 percent return in 2010. Two other gold mutual funds that investors should consider are the Oppenheimer Gold & Special Minerals A fund and Van Eck International Investors Gold A fund.
Another fund poised to continue its commendable 2010 performance is the U.S. Global Investors World Precious Minerals. This ranked number ten in the top ten performing mutual funds in 2010, with a 39.67 percent return. However, people should invest cautiously because the first three quarters of 2011 are expected to be characterized by hampered economic growth.