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.
T. Rowe Price Health Sciences (PRHSX) invests the majority of its assets in common stocks of companies whose primary operations are related to health sciences. The fund focuses on investing in large and mid-cap firms. It may also invest in foreign securities. The healthcare mutual fund has a one year annualized return of 34.61%.
Taymour R. Tamaddon is the fund manager and has managed this healthcare mutual fund since 2013.
Invesco Global Health Care A (GGHCX) seeks capital growth on a long term basis. The fund invests most of its assets in small and mid-cap companies which issue convertible and equity securities. The primary operations of these companies are related to the health-care industry. The healthcare mutual fund has a one year annualized return of 30.46%. The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.17% compared to a category average of 1.41%.
Rydex Biotechnology (RYOIX) invests the majority of its assets in domestic biotechnology companies. Investments are also parked in derivatives, primarily futures and options. The fund focusses on investing in small cap and mid cap companies. This healthcare mutual fund returned 40.09% over the last one year period.
As of August 2013, this healthcare mutual fund held 57 issues, with 7.81% of its total assets invested in Gilead Sciences Inc.
Fidelity Select Medical Delivery (FSHCX) seeks capital growth. The fund invests the majority of its assets in firms whose principal operations are related to managing or owning hospitals, nursing homes and other firms focusing on healthcare service delivery. The fund focusses on purchasing common stock. The healthcare mutual fund is non-diversified and returned 20.64% over the last one year period.
Steven Bullock is the fund manager and has managed this healthcare mutual fund since 2012.
ProFunds Biotechnology UltraSector (BIPSX) invests in a combination of securities and derivatives which can provide 150% of the returns provided by the Dow Jones U.S. Biotechnology Index. The healthcare mutual fund is non-diversified and returned 80.75% over the last one year period.
’ The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.73% compared to a category average of 2.09%.
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.
Read the analyst report on PRHSX
Read the analyst report on GGHCX
Read the analyst report on RYOIX
Read the analyst report on FSHCX
Read the analyst report on BIPSX
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