When markets are passing through choppy waters, investors often rely on the healthcare sector to safeguard their investments. This is because the demand for healthcare services does not vary with market conditions, making them a safe haven during difficult times. Many pharma companies also generate regular dividends, which go a long way in softening the blow dealt by plummeting share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
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, investors can click here to see the complete list of funds.
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 12.03% over the last one year period.
Andrew Hatem is the fund manager and has managed this healthcare mutual fund since 2009.
Vanguard Health Care (VGHCX) seeks long term capital growth. A large share of the fund’s assets is invested in companies whose principal operations are related to the healthcare sector. This includes companies involved ion research and development activities. The healthcare mutual fund returned 8.92% in the last one year period.
As of March 2012, this healthcare mutual fund held 88 issues, with 6.05% of its total assets invested in Merck & Co Inc.
Saratoga Health & Biotechnology A (SHPAX) invests heavily in stocks of domestic and foreign healthcare and biotech firms of all sizes. Common and preferred stocks and related convertible securities constitute the fund’s major investments. The healthcare mutual fund returned 13.26% in the last one year period.
The healthcare mutual fund has a minimum initial investment of $250 and an expense ratio of 2.73% compared to a category average of 1.55%.
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 instruments from at least three different countries at any given time. The healthcare mutual fund returned 10.59% in the last one year period.
Samuel D. Isaly is the fund manager and has managed this healthcare mutual fund since 1985.
Schwab Health Care (SWHFX) fund invests the majority of its assets in the healthcare sector. It primarily purchases 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 healthcare mutual fund returned 13.63% in the last one year period.
The healthcare mutual fund has a minimum initial investment of $100 and an expense ratio of 0.81% compared to a category average of 1.55%.
To view the Zacks Rank and past performance of all health 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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