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.
Schwab Health Care (SWHFX) invests the majority of its assets in companies related to the healthcare sector. A majority of the investment is made in domestic companies. A maximum of 25% of its assets may also be invested in foreign countries. The healthcare mutual fund is non-diversified and has a one year annualized return of 29.24%.
’ The healthcare mutual fund has a minimum initial investment of $100 and an expense ratio of 0.82% compared to a category average of 1.48%.
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 27.44%. Derek Taner is the fund manager and has managed this healthcare mutual fund since 2005.
Delaware Healthcare A (DLHAX) invests majority of its assets in domestic and foreign companies irrespective of their size. These companies must be related to the healthcare industry and derive at least half their revenue from the sale of products and services. The fund mayt also invest most of its assets in foreign nations, including developing economies. This healthcare mutual fund has a one year annualized return of 24.04%.
As of April 2013, this healthcare mutual fund held 56 issues, with 7.02% of its total assets invested in WelPoint Inc.
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 32.57%. The healthcare mutual fund has an expense ratio of 1.23% compared to a category average of 1.48%.
Fidelity Select Biotechnology (FBIOX) 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 45.47%.
Paul Alan Davis is the fund manager and has managed this healthcare mutual fund since 2006.
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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