3 Healthcare Mutual Funds to Boost Your Portfolio
Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds,viz., Fidelity Select Health Care Fund FSPHX, Janus Henderson Global Life Sciences Fund JNGLX and Vanguard Health Care Fund VGHCX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
Fidelity Select Health Care Fund seeks long-term capital appreciation. FSPHX invests most of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine.
Fidelity Select Health Care Fund has three-year annualized returns of 4.1%. Edward Yoon has been the fund manager of FSPHX since September 2008.
Janus Henderson Global Life Sciences Fund invests its net assets in securities issued by firms that the portfolio managers consider to have a life science emphasis to meet its investment goal. JNGLX has created a fundamental policy mandating a minimum investment of its total assets in securities issued by firms categorized under the "life sciences" sector as part of its strategy to locate such companies.
Janus Henderson Global Life Sciences Fund has a three-year annualized return of 8.4%. JNGLX has an expense ratio of 0.80% compared with the category average of 1.03%.
Vanguard Health Care Fund seeks long-term growth of capital and dividend income. VGHCX invests in common stocks of companies in various segments of the healthcare industry, including pharmaceutical firms, designers and manufacturers of medical equipment and supplies, operators of hospitals and other healthcare facilities, and biotechnological researchers.
Vanguard Health Care Fund has three-year annualized returns of 7.2%. As of April 2023, VGHCX held 101 issues, with 6.1% of its assets invested in Eli Lilly and Co.
To view the Zacks Rank and the past performance of all Healthcare mutual funds, investors can click here to see the complete list of healthcare mutual funds.
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