Energy Mutual Funds invest primarily in equity securities of companies who run business in energy-related industries. The fund manager also invests in companies that provide equipment and services to refineries, natural gas producers, distributors, converters, and cogeneration facilities. With the changing oil prices, investing in energy funds have attracted many investors to get higher returns. Some other factors such as lower inventory overhang, an extension of OPEC-led production cut, and rising demand are other reasons to invest in this fund.

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