Financial mutual funds primarily invest in companies, such as banks, brokerage firms, insurance providers, and consumer credit lenders. Today, we have focused on two such funds – FIDSX and FSPCX – with over 5% upside potential in the next twelve months, as projected by analysts.
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Let’s take a closer look at both funds.
Fidelity Select Financial Services (FIDSX)
The FIDSX fund invests at least 80% of its assets in companies engaged in providing financial services. It should be noted that the fund’s investment choices are based on a fundamental analysis of several factors, such as financial performance, market position, and economic conditions.
The fund has an expense ratio of 0.72%. Interestingly, FIDSX has generated a return of 12.7% over the past six months.
Overall, FIDSX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 49 have Buys, 16 have a Hold rating, and one has a Sell rating. The analysts’ average price target on the FIDSX fund of $14.65 implies a 9.86% upside potential from the current levels.
Fidelity Select Insurance Portfolio (FSPCX)
The FSPCX fund aims to provide long-term capital appreciation through exposure to the insurance industry. It invests in a diversified portfolio of insurance companies, including property and casualty, life, and health insurers.
Additionally, the fund has an expense ratio of 0.73%. The FSPCX fund has returned about 8% in the past six months.
On TipRanks, FSPCX has a Moderate Buy consensus rating. This is based on 18 stocks with a Buy rating and three stocks with a Hold rating. The analysts’ average price target on the FSPCX mutual fund of $94.40 implies about 8.72% upside potential from the current levels.
Concluding Thoughts
Mutual funds offer several benefits, such as diversification and higher liquidity in comparison to individual stocks. This, coupled with the projected upside potential of FIDSX and FSPCX, makes these funds worth considering by investors. However, a prudent approach necessitates in-depth research before investing.
