Top 5 Best Performing Healthcare Mutual Funds Year to Date

Zacks

The healthcare sector is one of the most desirable avenues for parking investments when markets are headed south. The demand for such services usually remains unchanged even during an economic downturn and investments in the sector provide sufficient protection to the capital invested. Several pharmaceutical companies also provide regular dividends, which can help mitigate losses from falling share prices. Healthcare mutual funds provide the perfect avenue for investors looking to invest in this sector.

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, then click here.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Biotech Ultra Sector

#1 Strong Buy

45.8%

Rydex Biotechnology

#1 Strong Buy

33.6%

Fidelity Select Biotechnology

#1 Strong Buy

31.4%

Franklin Biotechnology Discovery A

#1 Strong Buy

29.1%

T. Rowe Price Health Sciences

#1 Strong Buy

26.0%

 
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 has a three year annualized return of 15.66%.

The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.87% compared to a category average of 1.49%.

Rydex Biotechnology (RYOIX) seeks capital growth. The fund utilises a minimum of 80% of its assets to purchase equity securities and derivatives issued by domestic biotechnology companies. It focuses on acquiring securities of small and mid-cap companies. The healthcare mutual fund has a three year annualized return of 17.68%.

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

Fidelity Select Biotechnology (FBIOX) invests the majority of its assets in biotechnology companies as well as those 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 has a three year annualized return of 20.19%.

As of July 2012, this healthcare mutual fund held 156 issues, with 10.83% of its total assets invested in Gilead Sciences Inc.

Franklin Biotechnology Discovery A (FBDIX) seeks capital growth. The fund invests a large proportion of its assets in biotechnology companies and discovery research companies. The fund focuses on acquiring equity securities, with an emphasis on common stock. Not more than 20% of its assets may be invested in securities of any kind of domestic or foreign issuer. The healthcare mutual fund has a three year annualized return of 18.2%.

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 1.49%.

T. Rowe Price Health Sciences (PRHSX) invests heavily 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 has a three year annualized return of 22.36%.

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, then click here.

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 FBIOX

Read the analyst report on FBDIX

Read the analyst report on PRHSX

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)