Under the purview of the financial services industry, the insurance sector is an attractive investment option for mutual fund investors. Based on the predicted strength of the financial services industry due to an expected increase in interest rates, the insurance sector is poised for growth in coming years. Mutual fund investments targeting financial services and insurance companies are the simplest way to take advantage of a potential rise in the industry. The most popular mutual funds focused on insurance sector companies include the Fidelity Select Insurance Portfolio, the T. Rowe Price Financial Services Fund and the John Hancock Financial Industries Fund.

Fidelity Select Insurance Portfolio

The Fidelity Select Insurance Portfolio invests a minimum of 80% of pooled assets in equity securities of companies engaged in the personal and business insurance operations. These organizations include carriers that perform underwriting, reinsurance, selling, distribution and placement of life, disability, health, property and casualty insurance. The fund seeks capital appreciation through active management and is non-diversified. As of May 2015, the fund has returned 11.3% over the last year, 19.5% over three years and 13.5% over five years.

T. Rowe Price Financial Services Fund

The T. Rowe Price Financial Services Fund invests its assets in the common stock of companies operating within the financial services industry, including large, highly rated insurance carriers. The fund seeks to grow investor assets through long-term capital appreciation in addition to providing income through dividends. As of May 2015, PRISX has returned 9.5% over one year, 17.8% over three years and 10.9% over five years.

John Hancock Financial Industries Fund

The John Hancock Financial Industries Fund seeks capital appreciation through investing in the equity securities of companies engaged in the financial services industry, including insurance carriers. The fund diversifies its investment holding among foreign and domestic companies, and it carries a 1.29% expense ratio. As of May 2015, the fund has returned 2.0% over the last year, 16.9% over three years and 11.2% over five years.

  1. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  2. What are insurance sector companies usual profit margins?

    Understand what the average profit margin for a company that serves in the insurance sector and what factors can affect the ... Read Answer >>
Related Articles
  1. Investing

    Best Mutual Funds For Financial Service Company

    Understand the investment opportunities in the financial services sector, and learn about the best mutual funds for financial service company exposure for 2016.
  2. Investing

    The Top 5 Equity Mutual Funds for 2016

    Understand how equity securities can enhance an investor portfolio, and discover the five best equity mutual funds to consider for 2016.
  3. Financial Advisor

    4 Best T. Rowe Price Mutual Funds

    Learn about four of the best T. Rowe Price mutual funds that have shown strong performance with reasonable net expense ratios, outperforming most peers.
  4. Insurance

    Biggest Life Insurance Companies in the US (PRU, MET)

    Read about the top life insurance companies in the United States as measured by written premiums and learn a little more about their business operations.
  5. Insurance

    The History of Insurance in America

    Insurance was a latecomer to the American landscape, largely due to the country's unknown risks.
  6. Financial Advisor

    2016's Most Promising Mutual Funds

    Discover six mutual funds with promising potential for high returns in 2016. Learn which economic sectors can thrive in volatile markets.
  7. Investing

    How liquid are Fidelity mutual funds?

    Review the liquidity features of mutual fund shares and an overview of Fidelity mutual funds. Most investors look for convenient access to their investments.
  8. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
  9. Investing

    3 Fidelity Mutual Funds with Long Track Records

    Learn about mutual funds, provided by Fidelity Investments, that have long track records. Learn about the risks and rewards of lower-quality bonds.
  10. Financial Advisor

    Top 5 Financial Sector Mutual Funds

    Discover which mutual funds in the financial industry are top-rated funds, and learn how investors can utilize these funds in a diversified portfolio.
  1. Personal Lines Insurance

    Personal lines insurance includes property and casualty insurance ...
  2. Mutual Fund

    Mutual funds combine money from many investors to invest in a ...
  3. Annual Renewable Term (ART) Insurance

    A form of term life insurance that offers a guarantee of future ...
  4. Commercial Lines Insurance

    Commercial lines insurance helps keep the economy running smoothly ...
  5. Transfer of Risk

    A transfer of risk is a risk management technique where risk ...
  6. Compensating Balances Plan

    A compensating balances plan is a type of insurance policy where ...
Trading Center