Grab These 3 Healthcare Mutual Funds for Steady Returns
One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services does not change with market conditions. Many pharmaceutical companies also pay out regular dividends.
Companies that consistently offer dividends are financially stable and generate a steady cash flow, irrespective of market conditions. Mutual funds are the preferred choice 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 Fidelity Select Pharmaceuticals Portfolio FPHAX, Vanguard Health Care Investor Shares VGHCX and Fidelity Select Health Care FSPHX. 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 Pharmaceuticals Portfolio invests the majority of its net assets in common stocks of companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs. To arrive at their investment decision, FPHAX advisors employ fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Fidelity Select Pharmaceuticals Portfolio has three-year annualized returns of 11.7%. As of November 2023, FPHAX held 58 issues, with 24.1% of its assets invested in Eli Lilly.
Vanguard Health Care Investor Shares invests the majority of its net assets in the common stocks of foreign and domestic companies. These companies are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies, as well as businesses that operate hospitals and other healthcare facilities.
Vanguard Health Care Investor Shares has three-year annualized returns of 7.9%. VGHCX has an expense ratio of 0.36%.
Fidelity Select Health Care seeks to invest the majority of its net assets in common stocks of domestic and foreign issuers primarily engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. FSPHX’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 has five-year annualized returns of 9.5%. Edward Yoon has been a fund manager of FSPHX since 2008.
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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