The healthcare sector is one of the most desirable avenues for parking investments when markets are headed south. The demand for such services usually remains unchanged even during an economic downturn and investments in the sector provide sufficient protection to the capital invested. Several pharmaceutical companies also provide regular dividends, which can help mitigate losses from falling share prices. Healthcare mutual funds 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.
Prudential Jennison Health Sciences A (PHLAX) seeks capital growth on a long-term basis. The majority of its assets are used to purchase equity securities of domestic or foreign companies related to the health sciences sector. Investment decisions are made after conducting both fundamental and quantitative analysis. The healthcare mutual fund has a one year annualized return of 34.87%. The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.23% compared to a category average of 1.41%.
Invesco Global Health Care A (GGHCX) 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%. Derek Taner is the fund manager and has managed this healthcare mutual fund since 2005.
Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund invests a large share of its assets in domestic and international firms whose principal operations are related to technological research for the biotech sector. The fund focusses on purchasing common stock. The healthcare mutual fund has a one year annualized return of 50.47%.
As of July 2013, this healthcare mutual fund held 158 issues, with 14.48% of its total assets invested in Gilead Sciences Inc.
Putnam Global Health Care A (PHSTX) invests the majority of its assets in common stocks issued by domestic and foreign large and midcap companies. These companies are primarily those which operate in the healthcare sector. The mutual fund is non-diversified and has a one year annualized return of 30.48%.
The healthcare mutual fund has an expense ratio of 1.28% compared to a category average of 1.41%.
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 non-diversified healthcare mutual returned 45.83% over the last one year period.
Evan S. McCulloch is the fund manager and has managed this healthcare mutual fund since 1997.
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 PHLAXRead the analyst report on GGHCXRead the analyst report on PHSTXRead the analyst report on FBDIXRead the analyst report on
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