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 posses the analytical insight needed to keep abreast of the latest advancements in this domain.
Below we will share with you 5 top rated health mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all health funds, then click here.
Fidelity Select Medical Delivery (FSHCX) invests in firms engaged in the delivery of health care services. Such companies include those which manage hospitals, nursing homes health maintenance organizations and other firms focusing on delivery of healthcare services. The healthcare mutual fund returned 43.9% over the last one year period.
The health mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.88% compared to a category average of 1.72%.
Schwab Health Care (SWHFX) seeks capital appreciation by investing heavily in the healthcare sector. The fund primarily purchase equity securities but may also invest in future contracts. It focuses on investing in domestic firms, but may invest up to 25% of its assets in other countries. The health mutual fund has a three year annualized return of 9.37%.
Larry Mano is the fund manager and has managed this health mutual fund since 2000.
Delaware Healthcare A (DLHAX) invests at least 80% of its assets in both domestic and foreign health care companies across all market capitalizations. It may also consider investing in companies located in emerging markets. The healthcare mutual fund returned 40.01% over the last one year period.
As of April 2011, this healthcare mutual fund held 41 issues, with 8.29% of its total assets invested in Google, Inc.
Eaton Vance Worldwide Health Sciences A (ETHSX) seeks capital appreciation over the long term. The fund invests at least 80% of its assets in health science companies and related firms. The fund invests in both domestic and foreign securities, investing in instruments from at least three different countries at any given time. The health mutual fund has a five year annualized return of 7.85%.
The health mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.07% compared to a category average of 1.72%.
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 purchasing securities issued by large and mid-cap companies. The healthcare mutual fund returned 44.27% over the last one year period.
Kris H. Jenner is the fund manager and has managed this health mutual fund since 2000.
To view the Zacks Rank and past performance of all health 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.