The healthcare sector has become an especially viable option for parking investments when markets are headed south. Since the demand for such services usually remains unchanged by the state of the economy, they provide good protection for capital invested. Many several pharmaceutical companies also provide regular dividends, which can cushion losses from falling share prices. Healthcare mutual provide the perfect avenue for investors looking to invest in this sector.
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.
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.
The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.96% compared to a category average of 1.57%.
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.
Mark Oelschlager is the fund manager and he has managed this healthcare mutual fund since 2005.
Vanguard Health Care (VGHCX) seeks long term capital growth. A large share of the fund’s assets is invested in companies whose prinmicapl 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 December 2011, this healthcare mutual fund held 87 issues, with 6.41% of its total assets invested in Merck 7 Co Inc.
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 1.57%.
Fidelity Select Medical Equipment & Systems (FSMEX) seeks capital growth by investing heavily in the healthcare sector. The fund primarily invests in securities of companies which produce, distribute or develop medical equipment, devices and related technologies. The healthcare mutual fund returned 1.96% in the last one year period.
Edward Lee Yoon is the fund manager and he has managed this healthcare mutual fund since 2007.
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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