What are the most popular mutual funds that invest primarily in the insurance sector?

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.

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.

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.

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.