Financial Services
  • Financial services can make ideal investments for many investors, but make sure to research the no load mutual funds carefully
  • A financial services fund invests in companies which provide financial services, and companies which provide support to these financial services companies
  • No load bond funds offer many benefits but they also involve various risks

What are financial services funds? These are mutual funds which have diverse holdings with businesses that provide financial services. These mutual funds can also include the banking industry, which is a small sector of the financial services industry. A financial services fund has holdings in company stock for companies that provide financial services, as well as companies that provide needed services to the financial services companies. This can include software development and other services which are needed by the financial services. The diversification of financial services funds holdings will vary, and can range from high risk with very little diversity to low risk with a wide range of holdings that are very diverse. Choosing no load mutual funds and no load bond funds in the financial sector can help lower investment costs significantly. Load fees are simply sales commissions paid to the broker for investment advice and help in choosing the right funds for your specific investment needs and goals. Choosing no load funds means no load fees are deducted, but also that you must carefully and thoroughly evaluate all aspects of each possible fund, to find ones that fit best with your acceptable risk levels and your investment goals and strategies.

A financial services fund can mean investments with higher volatility and risks, but the potential rewards for these funds are also higher. One of the best no load funds for financial services is the Dryden Financial Services Z Fund, which trades under the symbol PFSZX. Offered by the JennisonDryden family of funds, and it offers net assets worth a little more than nine million dollars. Morningstar has rated the Dryden Financial Services Z Fund with five stars, making it one of the highest quality financial services funds out there. This fund is managed by Mark T. Lynch, and is considered an institutional fund because of the high minimum investment amount required, which for this fund is a large ten million dollars. The fund expense ratio is one point nine one percent, and the fund has been in operation since the year 1999. Another one of the no load mutual funds which may be right for many investors is the Kinetics Market Opportunities Fund, which has the symbol KMKNX for trading. This fund has a four star Morningstar rating, and has net assets worth more than thirty million dollars. Offered by Kinetics,
the Kinetics Market Opportunities Fund has a low initial investment requirement of only twenty five hundred dollars. This fund aims for long term capital appreciation using companies in the financial services sector, and has a fund expense ratio of one point six six percent.

Another financial services fund that many investors may want to consider is the Davis Financial Y Fund, which trades under the symbol DVFYX. This is one of the no load mutual funds in the financial services sector that has a four star Morningstar rating. Davis Funds offers this specific mutual fund, and it is a true no load fund with no marketing fees involved. The net assets for this fund are valued at a little over nine million dollars, and the total expense percentage for this financial services fund is point nine seven percent. Kenneth Charles Feinberg has been the lead manager of this fund since the inception in March of 1997. The yield for the fund is point eight six percent, and the minimum initial investment required is somewhat high at five million dollars. No matter which financial services fund you choose, make sure to do all the research and evaluation necessary to find the no load mutual funds which fit best with your investment goals and risk levels.