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 perfect 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 – Free Report) , Fidelity Select Health Care Portfolio (FSPHX – Free Report) and Fidelity Select Biotechnology Portfolio (FBIOX – Free Report) . 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 usually invests in the common stocks of large and mid-cap companies engaged in the business of health care, medicine, or the life sciences.
T. Rowe Price Health Sciences Fund has three-year annualized returns of 12.3%. As of June 2022, PRHSX held 214 issues, with 8.6% 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 11.6%. FSPHX has an expense ratio of 0.67% compared with the category average of 1.03%.
Fidelity Select Biotechnology Portfolio seeks to invest the majority of its net assets in common stocks of domestic and foreign issuers primarily engaged in research, development, manufacture, and distribution of various biotechnological products, services, and processes and companies that benefit significantly from scientific and technological advances in biotechnology. FBIOX’s investments are mostly based on a fundamental analysis of companies and their market position with respect to the broader economic conditions.
Fidelity Select Biotechnology Portfolio has three-year annualized returns of 7.1%. Rajiv Kaul has been one of the fund managers of FBIOX since 2005.
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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