Dion's Top Three Gold Fund Plays

NEW YORK (TheStreet) -- Although still a comfortable distance away from the more than $1,200-per-ounce highs at the end of last year, gold bullion and gold miners remain attractive investment options for investors looking for strong plays against a weakening dollar, inflation and general economic uncertainty.

Finding the most efficient way to play the yellow metal, however, can prove to be a time consuming and overwhelming task.

Thanks to mutual funds and ETFs investors are now provided with a vast number of options, all of which can satisfy even the most ravenous craving for precious metals.

Looking for an ETF play on gold miners? Today, investors can choose whether they want to play established operations like those in the Market Vectors Gold Miners ETF(GDX) or smaller, more volatile companies found in the Market Vectors Junior Gold Miners ETF(GDXJ).

The number of mutual funds that expose investors to gold miners is much greater.

Given the staggering number of options on the table, it is easy for investors to become overwhelmed. Therefore, to relieve some of this confusion, I will provide my personal picks for the best gold miner mutual funds and ETFs. This list contains three gold miner funds that I feel are the strongest, cheapest, and most liquid options available in the gold arena.

Fidelity Select Gold Fund(FSAGX)

Of the gold mutual fund options currently available, few offer as low a fee as the Fidelity Select Gold Fund, whose 0.86% expense ratio has likely aided in the fund's ability to accumulate over $3 billion in assets since its inception 25 years ago.

The five top equity positions of FSAGX are akin to a who's who of the gold mining industry. The top holdings include Goldcorp(GG), Barrick Gold(ABX), AngloGold Ashanti(AU), Newmont Mining(NEM) and Newcrest Mining. Together, these positions account for 41% of the fund's portfolio.

FSAGX, however, offers more than just exposure to gold miners. Over 7% of its portfolio is allocated to physical gold bullion, giving investors some exposure to the commodity itself.

In the past three months through March 12, FSAGX has fallen 3%