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Grab These 3 Healthcare Mutual Funds for Solid Returns

·3 min read

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 the 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 three top-ranked Healthcare mutual funds, namely T. Rowe Price Health Sciences Fund PRHSX, Fidelity Select Health Care Portfolio FSPHX and Fidelity Select Health Care Services Portfolio FSHCX. 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.

T. Rowe Price Health Sciences Fund is a non-diversified fund that seeks capital appreciation. PRHSX invests in the common stocks of companies engaged in the business of health care, medicine, or the life sciences.

T. Rowe Price Health Sciences Fund and has three-year annualized returns of 13.4%. As of March 2022, PRHSX held 223 issues, with 7.82% of its assets invested in UnitedHealth Group Inc.

Fidelity Select Health Care Portfolio seeks to invest the majority of its net assets in common stocks of domestic and foreign issuers which are primarily engaged in the design, manufacture, or sale of products or services in connection with health care or medicine. FSPHX uses fundamental analysis of companies and their market position with respect to broader economic conditions for its investment decision.

Fidelity Select Health Care Portfolio has three-year annualized returns of 12.2%. FSPHX has an expense ratio of 0.67% compared with the category average of 1.03%.

Fidelity Select Health Care Services Portfolio seeks to invest the majority of its net assets in common stocks of domestic and foreign issuers primarily engaged in the ownership or management of hospitals, nursing homes and health maintenance organizations. FSHCX’s investments are mostly based on a fundamental analysis of companies and their market position with respect to broader economic conditions.

Fidelity Select Health Care Services Portfolio has three-year annualized returns of 19.7%. Justin Segalini has been the fund manager of FSHCX since 2016.

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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