Top 5 Best Performing Healthcare Mutual Funds Year to Date

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When markets are facing a downturn, investors often depend on the healthcare sector to safeguard their investments. Since the demand for healthcare and related services does not fluctuate with changing market conditions, such investments are a safe haven during tough times. Many pharmaceutical companies also pay out regular dividends, which soften the blow investors receive from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they posses the advantages of analytical insight gleaned form in depth research which is needed to keep abreast of the latest advancements in this domain.

Below we will share with you the 5 best performing healthcare mutual funds year to date.  To view the Zacks Rank and past performance of all healthcare funds, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Biotech Ultra Sector

#1 Strong Buy

34.9%

Rydex Biotechnology

#1 Strong Buy

29.6%

Franklin Biotechnology Discovery A

#1 Strong Buy

28.9%

Fidelity Select Biotechnology

  #2 Buy

28.3%

T. Rowe Price Health Sciences

#1 Strong Buy

24.8%

 

ProFunds Biotechnology UltraSector (BIPSX) invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Biotechnology Index. The healthcare mutual fund is non-diversified and returned 22.58% over the last one year period.

The healthcare mutual fund has an expense ratio of 2.87% compared to a category average of 1.50%.

Rydex Biotechnology (RYOIX) seeks capital growth. The fund invests a large share of its assets in equity securities and derivatives issued by domestic biotechnology companies. The fund is non-diversified and seeks long-term capital growth. The healthcare mutual fund returned 23.16% over the last one year period.

Michael P. Byrum is the fund manager and has managed this healthcare mutual fund since 1998.

Franklin Biotechnology Discovery A (FBDIX) invests the majority of its assets in securities issued by biotechnology and drug discovery companies. The fund primarily purchases equity securities, focusing on common stock. Not more than 20% of its assets may be invested in securities from other sectors. The healthcare mutual fund returned 23.68% over the last one year period.

The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.26% compared to a category average of 1.50%.

Fidelity Select Biotechnology (FBIOX) seeks appreciation of capital. The fund invests a large share of its assets in companies seeking to benefit from advances in the biotechnological sector. It focuses on acquiring common stocks and may also purchases securities issued by foreign companies. The healthcare mutual fund returned 22.33% over the last one year period.

As of June 2012, this healthcare mutual fund held 151 issues, with 9.74% of its total assets invested in Gilead Sciences Inc.

T. Rowe Price Health Sciences (PRHSX) invests the majority of its assets in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund returned 16.99% over the last one year period.

Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.

To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds

Read the analyst report on BIPSX

Read the analyst report on RYOIX

Read the analyst report on FBDIX

Read the analyst report on FBIOX

Read the analyst report on PRHSX

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