The Best Mutual Fund for 2012
I normally don't invest in mutual funds, however with my job we are required to invest in one through our 401K plans. This leaves us with many choices for our retirement plans. I've scoured all the funds available and I am convinced that one mutual fund will 0utperform all the rest in 2012: the Tocqueville Gold Fund.
The Tocqueville Gold Fund (Quote: TGLDX) seeks long-term capital appreciation, and it normally invests "at least 80% of net assets plus borrowings for investment purposes in gold and securities of companies located throughout the world, in both developed and emerging markets, that are engaged in mining or processing gold." The fund is composed of not only gold companies but physical gold itself, which I expect to rise to $2,500 in 2012 based on a number of reasons including continued political chaos in Europe (and even here in the US), rising inflation, and increased concern over the US national debt, which is now over $15 trillion and 100 percent of our GDP.
Tocqueville is rated four out of five stars by Morningstar. The annual expense ratio is 1.34 percent, which I feel is a little high compared to other funds. I don't feel this will matter in the long term, however, as I expect the fund to significantly outperform others.
The fund's largest holding is physical gold (6.73 percent), followed by Goldcorp stock (5.53). Although the fund does not include my favorite gold stock, Sandstorm Gold, which I feel can potentially return 10x your money, the fund does include a silver company really love, called Silver Wheaton (Quote: SLW). This makes up (3.39 percent).
The current price of the fund as of 12/11/11 is $79.74. I would expect this to be in the $100-140 range at the end of 2012. Check the photo below to see a list of the fund's holdings and let me know what you think.
Full Disclosure: Long TGLDX and SLW.