Natural Gas Mutual Funds

Gas Mutual Funds

As the years pass, the world's energy demand is only increasing, mainly due to growth in China and India. This has left no doubt in many minds that the price of gas will only continue to grow in the years to come. Because the earth's limited supplies of coal, oil and nuclear energy, alternative to gas, investors have become interested in investing in natural gas investment funds. One way to do this is through the gas traded fund or ETF. Typically, ETFs try to use futures contracts to track gas prices. However, there are certain disadvantages of this method. Condition futures market (whether sales going above or below the expected amount) may have an impact on the return. It can be very difficult to trade in the future, and the technical details may result in volatility and the lag in monitoring prices.

The advantage of the natural gas fund

When the price of gas goes up to a large extent, the result will be that the value of the company's gas production will be more than the actual cost of gas. So if there are doubts that the price of gas will continue to go up, investing in mutual funds natural gas is a smart move. But putting all your money behind just one company can be risky, because it can cause shock stock bears no resembles the actual cost of gas. An easy fix is ​​simply to invest in more than one gas producing company.

Best Gas Mutual Funds

Increasing gas prices increase investment opportunities in the entire gas value chain, from manufacturers and service companies in the real gas distributors. There are several funds that rely heavily on gas-producing companies. One of them is particularly Fidelity Select Natural Gas. More than 70 manufacturers of gas supply stock fund. When choosing a gas resources are for growth, Fidelity also offers a range of sector funds, such as the no load Fidelity Select Natural Gas (FSNGX) fund. Other assets include the FBR Gas Utility Index (GASFX) and JP Morgan Alerian MLP Index ETN (AMJ), a good income for the fund, First Trust ISE-Revere Natural Gas Index ETF (FCG) and Devon Energy DVN) for growth. In addition to mutual funds and ETFs, there are stocks, such as the Targa funds (NGLS) and Williams (Partners WPZ).