The financial sector has come up with encouraging earnings results amid rising rates. Big banks like JPMorgan Chase & Co. JPM, Citigroup C and The PNC Financial Services Group PNC have all posted better-than-expected earnings results.Additionally, rate hike prospects in the coming months are also expected to make this space a coveted one among investors. Following these promising trends, investing in financial mutual funds will be a prudent decision.Big Banks’ Q2 Earnings in FocusHigher-than-expected trading revenues and a rise in demand for loans drove JPMorgan’s earnings per share. Even net revenues topped the Zacks Consensus Estimate. (Read More)Driven by top-line strength, Citigroup delivered a positive earnings surprise of 5.2%. Revenues were up 2% year over year and surpassed the Zacks Consensus Estimate. (Read More)PNC Financial Services delivered a positive earnings surprise of 5.4%. Total revenues advanced 6.5% year over year and outpaced the Zacks Consensus Estimate. (Read More)Steady Earnings, High Rate Hike Prospects Boost FinancialsOut of the 99 Finance sector companies on the S&P 500 index, only four reported earnings in the week ended Jul 13. However, these companies account for a sizable 21.3% of the sector’s total market capitalization on the index. Total earnings for these companies are up 11.4% from the same period last year on 3.6% revenue growth, with 75% beating EPS estimates and 100% beating revenue estimates. (Read More)After the Federal Open Market Committee (FOMC) policy meeting held in June, the Fed raised its key interest rate for the second time this year by 0.25 points. The FOMC now thinks that two more rate hikes are due this year, which again bodes well for financials.Buy These 5 Financial MutualFundsThe financial sector is expected to perform favorably in coming months following encouraging earnings results and the Fed’s strong interest rate hikes. According to Morningstar, the financial mutual fund category one-year return is 9.3%.This encouraging backdrop warrants investor focus on five financial mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have impressive one-year annualized returns. They also have minimum initial investment within $5000 and low expense ratios.We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.Fidelity Advisor Financial Services A FAFDX invests a big part of its assets in securities of companies involved mainly in offering financial services to consumers and industry. FAFDX invests in both U.S. and non-U.S. companies.FAFDX carries an expense ratio of 1.12% compared with the category average of 1.39%. Moreover, FAFDX requires a minimal initial investment of $2,500. The fund has one-year annualized returns of 10.2%.FAFDX has a Zacks Mutual Fund Rank #2. Further, Christopher T. Lee is the fund manager of FAFDX since 2013.T. Rowe Price Financial Services PRISX seeks both capital growth in the long run and current income. The majority of its assets are invested in financial services companies. It may also purchase securities of companies involved in providing financial software. The fund uses fundamental bottom-up analysis to select securities.PRISX carries an expense ratio of 0.85% compared with the category average of 1.39%. Moreover, PRISX requires a minimal initial investment of $2,500. The fund has one-year annualized returns of 13.3%.PRISX has a Zacks Mutual Fund Rank #2. Further, Gabriel Solomon is the fund manager of PRISX since 2014.Fidelity Select Brokerage & Investment Management FSLBX invests a large portion of its assets in securities of companies primarily involved in the exchange of stock brokerage, financial instruments, investment banking, commodity brokerage, investment sales or tax-advantaged investment.FSLBX carries an expense ratio of 0.78% compared with the category average of 1.39%. Moreover, FSLBX requires a minimal initial investment of $2,500. The fund has one-year annualized returns of 14.5%.FSLBX has a Zacks Mutual Fund Rank #1. Further, Daniel Dittler is the fund manager of FSLBX since 2015.Prudential Jennison Financial Services A PFSAX invests a heavy portion of its assets in equity securities of companies that provide financial services. PFSAX may invest around 30% of its assets in non-U.S. companies.PFSAX carries an expense ratio of 1.34% compared with the category average of 1.39%. Moreover, PFSAX requires a minimal initial investment of $2,500. The fund has one-year annualized returns of 11.6%.PFSAX has a Zacks Mutual Fund Rank #2. Further, Steven A. Gavios is one of the fund managers of PFSAX since 2017.Fidelity Select Consumer Finance Portfolio FSVLX seeks appreciation of capital. FSVLX invests a large chunk of its assets in securities of companies involved in offering services related to consumer finance.FSVLX carries an expense ratio of 0.90% compared with the category average of 1.39%. Moreover, FSVLX requires a minimal initial investment of $2,500. The fund has one-year annualized returns of 16.8%.FSVLX has a Zacks Mutual Fund Rank #1. Further, Shilpa Mehra is the fund manager of FSVLX since 2012.Want key mutual fund info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Get Your Free (PFSAX): Fund Analysis Report Get Your Free (FAFDX): Fund Analysis Report Get Your Free (FSVLX): Fund Analysis Report Get Your Free (FSLBX): Fund Analysis Report Get Your Free (PRISX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research