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5 Impressive Finance Mutual Funds for High Return - Mutual Fund Commentary

Economic reports including encouraging job numbers, a slew of positive housing market data and upbeat consumer sentiment has suggested that the economy is gradually gaining strength. This raised the possibility of a rate hike in near future. It is speculated that the Fed will raise interest rates by the end of this year. The rate increase will expand margins for brokerage firms, insurance companies, banks, and money managers. Further, the increased interest rates would enable banks to earn more on the spread between interest rates for savings accounts and certificates of deposit. Meanwhile, the financial sector witnessed an encouraging second quarter earnings season. In this favorable environment, investors may find it profitable to invest in financial mutual funds that are positioned to benefit from a possible rate hike.

Below we will share with you 5 buy-ranked finance mutual funds . Each has earned a Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all finance mutual funds, investors can click here to see the complete list of funds .

Davis Financial Y (DVFYX) seeks long term capital appreciation. DVFYX invests a major portion of its assets in securities issued by companies involved in the financial services sector. DVFYX invests mostly in common stocks that include indirect holdings of common stock through depositary receipts. DVFYX offers dividends and capital gains annually. The Davis Financial Y fund returned 14.4% in the last one year.

DVFYX has an expense ratio of 0.70% as compared to a category average of 1.51%.

JHancock Regional Bank A (FRBAX) invests a large portion of its assets in stocks of regional banks and other lending companies, which includes commercial and industrial banks, savings and loans associations and bank holding companies. FRBAX may also invest in domestic and foreign financial services companies and around 5% of its assets in stocks of companies outside the financial services sectors. FRBAX distributes its dividends and capital gains, if any, annually. The JHancock Regional Bank A fund returned 16.4% in the last one year.

As of May 2014, this fund held 115 issues, with 3.60% of its total assets invested in JP Morgan Chase & Co

Fidelity Select Brokerage & Invmt Mgmt (FSLBX) seeks long-term capital growth. FSLBX invests a lion's share of its assets in common stocks of companies engaged in investment banking, tax-advantaged investment, investment management, stock broker age, commodity brokerage or related investment advisory services. FSLBX offers dividends and capital gains twice a year in April and December. The Fidelity Select Brokerage & Invmt Mgmt fund is non-diversified and returned 10.6% in the last one year.

FSLBX has an expense ratio of 0.79% as compared to a category average of 1.51%.

Fidelity Select Insurance Portfolio (FSPCX) invests a large chunk of its assets in companies that are involved in operations including underwriting, selling, distribution of insurances related to property, casualty, life, or health. FSPCX focuses on acquiring common stocks of companies throughout the globe. FSPCX considers factors including financial strength and economic conditions before investing in securities of a company. The Fidelity Select Insurance Portfolio fund is non-diversified and returned 12.7% in the last one year.

Peter Deutsch is the fund manager and has managed FSPCX since 2013.

Vanguard Financials Index Admiral (VFAIX) seeks to track the performance of the MSCI US Investable Market Index by an indexing investment approach. The index comprises of large, mid-size, and small U.S. companies within the financial sector, as defined under the Global Industry Classification Standard. The Vanguard Financials Index Admiral fund is non-diversified and returned 12.7% in the last one year.

VFAIX has an expense ratio of 0.12% as compared to a category average of 1.51%.

To view the Zacks Rank and past performance of all finance mutual funds, investors can click here to see the complete list of funds .

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. Pick the best mutual funds with the Zacks Rank.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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