When markets are sailing through troubled waters, investors often depend on the healthcare sector to protect their valuable investments. Healthcare and related services continue to remain in demand during difficult market conditions and are a safe haven in tough times. Several pharmaceutical companies also pay out regular dividends, which help in combating losses from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the analytical insight needed to keep abreast of the latest advancements in this sector.
Below we will share with you the 5 best performing healthcare mutual funds year-to-date. To view the Zacks Rank and past performance of all healthcare funds, investors can click here to see the complete list of funds.
|Mutual Fund||Zacks Rank||Total Return YTD|
|ProFunds Biotech Ultra Sector||#2 - Buy||18.5%|
|Rydex Biotechnology||#2 - Buy||14.7%|
|Fidelity Select Biotechnology||#2 - Buy||12.6%|
|Franling Biotechnology Discovery A||#1 - Strong Buy||12.5%|
|T. Rowe Price Health Sciences||#1 - Strong Buy||10.0%|
ProFunds Biotechnology UltraSector (BIPSX) invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Biotechnology Index. The remainder of the funds assets are utilised to invest in money market securities. The healthcare mutual fund is non-diversified and returned 27.86% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.87% compared to a category average of 1.57%.
Rydex Biotechnology (RYOIX) seeks capital growth. The fund invests a large share of its assets in equity securities and derivatives issued by domestic biotechnology companies. The fund is non-diversified and seeks long-term capital growth. The healthcare mutual fund returned 29.59% over the last one year period.
Michael P. Byrum is the fund manager and has managed this healthcare mutual fund since 1998.
Fidelity Select Biotechnology (FBIOX) invests the majority of its assets in companies seeking to benefit from advances in the biotechnological sector. It focuses on acquiring common stocks and may also purchases securities issued by foreign companies. The healthcare mutual fund returned 32.21% over the last one year period.
As of December 2011, this healthcare mutual fund held 128 issues, with 17.25% of its total assets invested in Amgen Inc.
Franklin Biotechnology Discovery A (FBDIX) seeks capital growth. The fund invests a large proportion of its assets in biotechnology companies and discovery research companies. The fund focuses on acquiring equity securities, with an emphasis on common stock. The healthcare mutual fund returned 22.48% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.31% compared to a category average of 1.57%.
T. Rowe Price Health Sciences (PRHSX) invests the majority of its assets in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund returned 18.69% over the last one year period.
Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds
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