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.
Franklin Biotechnology Discovery A (FBDIX) seeks capital growth. The majority of its assets is invested in equity of biotechnology and research companies. A maximum of 20% can also be invested in equity or debt securities of domestic or foreign companies. The healthcare mutual returned 63.58% over the last one year period.
The healthcare mutual fund has an expense ratio of 1.20% compared to a category average of 1.44%.
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. This healthcare mutual fund returned 49.77% over the last one year period.
Taymour R. Tamaddon is the fund manager and has managed this healthcare mutual fund since 2013.
VALIC Company I Health Sciences (VCHSX) seeks long term capital growth. The fund invests the majority of its assets in common stocks of healthcare products, medicine or life sciences related companies. It focuses mainly on investing in large and mid-cap companies. Not more than 35% of its assets may be invested foreign securities. The healthcare mutual fund returned 51.41% over the last one year period.
As of September 2013, this healthcare mutual fund held 232 issues, with 6.55% of its total assets invested in Gilead Sciences Inc.
Fidelity Select Health Care (FSPHX) invests the majority of its assets in companies whose principal operations include production, design and sales of health care related products or services. The fund focuses on acquiring common stocks and purchases both domestic and foreign securities. The healthcare mutual fund returned 54.20% over the last one year period.
The healthcare mutual fund has an expense ratio of 0.78% compared to a category average of 1.44%.
ProFunds UltraSector Health Care (HCPSX) seeks daily returns which are 150% of the daily return of the Dow Jones U.S. Biotechnology Index. The fund invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Health Care Index. The healthcare mutual fund returned 60.61% over the last one year period.
Michael Neches is the fund manager and has managed this healthcare mutual fund since 2013.
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.
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Read the analyst report on PRHSX
Read the analyst report on FBDIX
Read the analyst report on RYOIX
Read the analyst report on FSHCX
Read the analyst report on BIPSX
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