The Fidelity Select Gold Portfolio fund falls under Morningstar's precious metals category. Funds in this category often invest in stocks related to gold and other precious metals, which may include companies that mine, explore, trade or process these precious metals. Fidelity Management %26 Research invests assets primarily in companies engaged in the exploration, extraction, processing or trading of gold, or to a lesser degree, silver, platinum, diamonds or other precious metals and minerals. Maverick is an active trader, commodity futures broker and stock analyst with more than 17 years of experience, plus more than 10 years of experience as a financial writer and book editor.
The fund can invest up to 40% of its assets in stocks of emerging market countries and up to 25% of its assets in metal-related debt securities. All dividends or capital gains are distributed annually. Fidelity Investments established the Fidelity Select Gold Portfolio Fund (FSAGX) in 1985.The main purpose of this precious metals fund is to provide investors with capital appreciation. The Invesco Gold and Special Minerals Fund (OPGSX), founded in 1983, seeks long-term capital appreciation.
Major holdings include Barrick, Northern Star Resources, Newmont and Evolution Mining. Gold makes up the bulk of the portfolio with 75% of assets. The Gabelli Gold Fund, Inc. Victory Capital.
USAA Precious Metals and Minerals Fund. Under normal circumstances, fund manager Steven Calhoun invests a minimum of 80% of the fund's total assets in common shares of corporations engaged in various forms of gold-related transactions, and in gold bullion and coins. Bradshaw, the fund's manager, seeks to achieve the fund's goal by typically investing 80% or more of the fund's assets in companies that are actively involved in exploration, extraction and processing of gold, companies that trade in gold and other precious metals and minerals, or companies that generate at least half of their income from such businesses. The fund's main portfolio holdings include Barrick Gold, Wheaton Precious Metals, Kinross Gold, Gold Field Limited and Franco-Nevada Corp.
The main precious metals are gold, silver, palladium, platinum, iridium, rhodium, ruthenium and osmium. The fund's manager, Shanquan Li, invests in shares of mining companies that focus on gold and other precious metals. Equity securities issued domestically and abroad of companies that carry out operations related to gold and gold bullion. The fund's manager, Mannik Dhillon, aims to achieve these objectives by typically investing at least 80% of the fund's assets in foreign and domestic companies with primary operations in the exploration, extraction or processing of gold, silver, platinum, diamonds or other precious minerals.
Although the main allocation is given to gold mining stocks, many funds offer a substantial amount of exposure to other precious metals, such as platinum and silver. Fidelity offers investors the opportunity to buy precious metals1 as part of a diversification strategy.