During difficult market conditions, investors often depend on the healthcare sector to safeguard their investments. Since the demand for healthcare and related services does not vary with market conditions, they are a safe haven during tough times. Many pharmaceutical companies also generate regular dividends, which aid in combating losses from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the analytical insight 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||18.1%|
T. Rowe Price Health Sciences
|#1 Strong Buy||13.7%|
Fidelity Select Biotechnology
|Franklin Biotechnology Discovery A||#3 Hold|| |
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 remainder of the funds assets are utilised to invest in money market securities. The healthcare mutual fund is non-diversified and returned 27.02% over the last one year period.
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 1.57%.
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 28.45% over the last one year period.
Michael P. Byrum is the fund manager and has managed this healthcare mutual fund since 1998.
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 18.16% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.82% compared to a category average of 1.57%.
Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund invests the majority 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 32.35% over the last one year period.
As of January 2012, this healthcare mutual fund held 134 issues, with 10.76% of its total assets invested in Amgen Inc.
Franklin Biotechnology Discovery A (FBDIX) 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. The healthcare mutual fund returned 23.15% over the last one year period.
Evan S. McCulloch is the fund manager and has managed this healthcare mutual fund since 1997.
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
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