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Top 5 Best Performing Financial Funds
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ShareThe financial sector has been experiencing rough weather in recent times with clamors for systemic reform getting louder. However, select financial sector funds have continued to perform well and prospects over the long term continue to be bright. This is because the sector’s health is a reflection of the overall economic climate and the economy is already showing signs of recovery. With the benefits of professional management and wide diversification, financial funds offer the best option for those looking to invest in this sector.
Below we will share with you the 5 best performing financial funds year to date. To view the Zacks Rank and past performance of all financial funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| FBR Small Cap Financial Investor | #1 Strong Buy | 7.77% |
| ProFunds Banks UltraSector | #1 Strong Buy | 7.57% |
| Diamond Hill Financial Long-Short A | #1 Strong Buy | 5.27% |
| Fidelity Select Insurance | #1 Strong Buy | 5.03% |
| Forward Banking and Finance A | #1 Strong Buy | 4.18% |
FBR Small Cap Financial Investor (FBRSX) seeks capital growth. The majority of its assets are invested in small-cap companies providing financial services to individuals and institutions. It concentrates on acquiring stocks of companies which invest in real estate through mortgages and related loans. Up to 20% of its assets may be used to purchase securities issued by large cap companies outside the financial sector. The fund has a ten year annualized return of 13.35%.
The fund manager is David Ellison and he has managed this financial fund since 1996.
ProFunds Banks UltraSector (BKPIX) invests at least 80% of its assets in equity securities which are included in the Dow Jones U.S. Banks index or those having similar features. The fund uses leveraged investment techniques and may also utilize sampling techniques. It uses the assets not invested in equity securities to purchase debt or money market instruments. It is a no-load fund.
This financial fund returned 137.45% in the last one year period.
Diamond Hill Financial Long-Short A (BANCX) seeks long-term growth of capital. Equity securities of banks, lending institutions, insurance companies, real estate investment trusts and other financial service companies constitute the majority of its investments. The fund returned 110.88% over the last one year period and has a ten year annualized return of 6.9%.
This financial fund has a minimum initial investment of $2,500 and an expense ratio of 1.58% compared to a category average of 1.73%.
Fidelity Select Insurance (FSPCX) primarily invests at least 80% of its assets in insurance companies. This includes firms involved in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. The fund returned 66.54% over the last one year period.
As of February 2010, this financial fund held 33 issues, with 11.14% of its total assets invested in Berkshire Hathaway Inc. B.
Forward Banking and Finance A (HSSAX) seeks capital appreciation. It invests a large share of its assets in companies in the banking and financial services sector. At least 25% of its assets are invested in banks and a similar share is used to purchase securities of financial service companies. The fund has a ten year annualized return of 6.62%.
Joseph W. Garner is the fund manager and he has managed this financial fund since 2009.
To view the Zacks Rank and past performance of all financial funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
Read the full analyst report on FBRSX
Read the full analyst report on BKPIX
Read the full analyst report on BANCX
Read the full analyst report on FSPCX
Read the full analyst report on HSSAX
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| Market Summary | May 26, 2012 07:53 am ET |
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