Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that pay out consistent dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below we share with you four top-ranked healthcare mutual funds. 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.
Invesco Health Care Fund Class A GGHCX seeks long-term appreciation of capital by investing in equity securities of health care companies across the globe. The fund invests the majority of its assets in equity securities of companies engaged in health care-related industries as well as in derivatives and other instruments having economic characteristics similar to such securities. GGHCX has three-year annualized returns of 7.6%.
Henry Wu is the fund manager of GGHCX since 2017.
Janus Henderson Global Life Sciences Fund T JAGLX invests in securities of companies that have a life science orientation. JAGLX invests a minimum of one-fourth of its assets in securities issued by companies that are categorized in the "life sciences" sector. JAGLX has three-year annualized returns of 9.8%.
JAGLX has an expense ratio of 0.92% compared with the category average of 1.22%.
Fidelity Select Health Care Services Portfolio FSHCX fund seeks long-term growth of capital and invests a bulk of its shares in securities of companies involved in the ownership and management of hospitals, nursing homes and health maintenance organizations. FSHCX also invests in companies that provide direct healthcare services. This non-diversified fund invests in common stocks of both U.S. and non-U.S. companies. FSHCX has three-year annualized returns of 11.8%.
As of July 2019, FSHCX held 30 issues with 24.7% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Medical Technology and Devices Portfolio FSMEX fund aims for capital growth. The fund invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies etc. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 16.2%.
FSMEX has an expense ratio of 0.73% compared with the category average of 1.22%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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