round of rate increases will come to an end in late 2005 or 2006.
Although investors shouldn’t overload on financial services mutual funds, a fund in this category might merit a small place in a well-diversified portfolio. “Investors who have growth-heavy portfolios might use these funds for balance,” says Lutton. That is, a financial services mutual fund that holds value stocks could steady a portfolio tilted too far toward growth stocks.
If you’re interested in financial services mutual funds, a couple of Morningstar analyst picks are the Davis Financial (RPFGX) and T. Rowe Price Financial Services (PRISX) funds, both of which spread their holdings over many different types of companies.
|Fund Name||Ticker||1-Yr. Total Return*||3-Yr. Annualized Total Return*||5-Yr. Annualized Total Return*||Minimum Initial Purchase||Phone Number|
|Merrill Lynch Global Financial Svcs B||MBFNX||37.01%||25.60%||14.86%||$1,000||800-995-6526|
|Forward Emerald Banking and Finance A||HSSAX||21.39||23.12||22.85||500||800-232-0224|
|Fidelity Select Brokerage & Investmnt||FSLBX||39.19||21.56||6.09||2,500||800-343-3548|
|FBR Small Cap Financial||FBRSX||15.12||19.78||24.90||2,000||888-888-0025|
|Diamond Hill Bank & Financial A||BANCX||12.31||19.46||24.72||10,000||888-226-5595|
|Burnham Financial Services A||BURKX||11.39||18.97||25.56||2,500||800-874-3863|
|Gartmore Global Financial A||GLFAX||16.38||18.78||NA||2,000||800-848-0920|
|Constellation TIP Financial Services||TFFIX||21.36||17.68||7.71||2,500||866-242-5742|
|AXA Enterprise Global Financial Svc A||EGFAX||18.74||16.19||10.51||2,000||800-368-3527|
|Schwab Financial Services||SWFFX||22.22||16.16||8.71||5,000||800-435-4000|