Top 3 Healthcare Mutual Funds to Strengthen Your Portfolio
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 perfect 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 healthcare mutual funds, viz., Fidelity Advisor Biotechnology Fund FBTIX, 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 Advisor Biotechnology Fund seeks capital appreciationby investing in companies engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes, and companies that benefit significantly from scientific and technological advances in biotechnology. FBTIX advisors also invest in common stocks.
Fidelity Advisor Biotechnology Fund has three-year annualized returns of 0.8%. FBTIX has an expense ratio of 0.74% compared with the category average of 1.03%.
Janus Henderson Global Life Sciences Fund invests its net assets in securities issued by firms that the advisors believe have a life science emphasis. 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.
Janus Henderson Global Life Sciences Fund has a three-year annualized return of 6.6%. Andy Acker has been the fund manager of JNGLX since June 2007.
Vanguard Health Care Fund seeks long-term growth of capital and dividend income. VGHCX invests in common stocks of companies in a variety of segments of the healthcare industry, which include 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 6.2%. 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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