3 Retail Mutual Funds To Gain From Consumer Spending Surge

By | September 4, 2015

Scalper1 News

Retail is one of the main sectors that benefits from higher consumer spending as expenditures in the retail sector represents almost 30% of the consumer spending, which has increased significantly in recent times. After surfacing as one of the few bright spots in the first-quarter GDP report, consumer spending was the mainstay of the economy in the second. Consumer expenditure is likely to continue this positive trend on the back of strong economic fundamentals including robust labor-market condition, increase in wages and slump in oil prices. Moreover, the second-quarter earnings performance from the retail sector also confirms the bullish trend. Hence, investors may consider retail mutual funds with strong fundamentals in order to gain from this favorable economic environment. Below we will share with you 3 buy-ranked retail mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. Fidelity Select Consumer Discretionary Portfolio (MUTF: FSCPX ) normally invests a lion’s share of its assets in securities of companies mostly involved in the consumer discretionary sector. FSCPX primarily invests in common stocks of companies all over the globe. Factors including financial strength and economic condition are considered before investing in a company. The Fidelity Select Consumer Discretionary Portfolio is non-diversified fund and has returned 9.2% in the last one year. Peter Dixon is the fund manager and has managed FSCPX since 2014. Fidelity Select Retailing Portfolio (MUTF: FSRPX ) seeks growth of capital. FSRPX invests a large chunk of its assets in securities of retailing companies that are traded within the domestic boundary. FSRPX may also invest in derivatives including futures contracts and options. FSRPX invests a notable share of its assets in small- and mid-cap companies. FSRPX may consider ADRs to invest in foreign companies and securities issued by the US government. The Fidelity Select Retailing Portfolio fund has returned 8.2% in the last one year. FSRPX has an expense ratio of 0.81% as compared to category average of 1.46%. Putnam Global Consumer A (MUTF: PGCOX ) invests in mid-to-large companies that are involved in the manufacture, sale or distribution of consumer staples and consumer discretionary products and services. PGCOX uses “blend” strategy to invest in common stocks of companies. The Putnam Global Consumer A fund has returned 2.4% in the last one year. As of June 2015, PGCOX held 96 issues with 6.61% of its assets invested in Amazon.com (NASDAQ: AMZN ). Original Post Share this article with a colleague Scalper1 News

Scalper1 News