Top 5 Zacks #1 Ranked Healthcare Mutual Funds

Zacks

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.

Putnam Global Health Care A (PHSTX) invests predominantly in common stocks of large and mid size companies from the health care sector across the world. The fund may purchase both growth and value stocks. The healthcare mutual fund has a three year annualized return of 9.54%.

Kelsey Chen is the fund manager and has managed this healthcare mutual fund since 2005.

Prudential Jennison Health Sciences A (PHLAX) seeks capital growth over the long term. It invests heavily in equity and related securities and its portfolio may include pharmaceutical companies, biotech firms, service providers and medical device manufacturers. The healthcare mutual fund has a three year annualized return of 24.20%.

As of October 2012, this healthcare mutual fund held 86 issues, with 6.04% of its total assets invested in Alexion Pharmaceuticals, Inc.

Schwab Health Care (SWHFX) invests a large proportion of its assets in the healthcare sector. It mainly invests in equity securities but may also invest in derivatives. The fund focuses on investing in domestic firms, but may invest up to 25% of its assets in other countries. The healthcare mutual fund has a three year annualized return of 16.49%.

The healthcare mutual fund has an expense ratio of 0.81% compared to a category average of 1.52%.

Eaton Vance Worldwide Health Sciences A (ETHSX) seeks long-term capital appreciation. The fund focuses on investing in medical research and the healthcare sector. It invests the majority of its assets in companies which are primarily engaged in scientific development in the healthcare sector. A maximum of 5% of its assets may be utilized to purchase royalty bonds. The healthcare mutual fund has a three year annualized return of 13.32%.

Samuel D. Isaly is the fund manager and has managed this healthcare mutual fund since 1985.

Biotechnology UltraSector ProFund Service (BIPSX) invests in equity securities and derivatives which together should provide daily returns which are 150% of the daily return of the Dow Jones U.S. Biotechnology Index. The fund may also invest in short term cash instruments of high quality. The healthcare mutual fund has a three year annualized return of 24.87%.

The healthcare mutual fund has an expense ratio of 2.73% compared to a category average of 1.52%.

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.

Read the analyst report on PHSTX

Read the analyst report on PHLAX

Read the analyst report on SWHFX

Read the analyst report on ETHSX

Read the analyst report on BIPSX



View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research



More From Zacks.com
View Comments