4 Top-Ranked Healthcare Mutual Funds To Boost Your Return
When markets are plying through choppy waters, investors often rely on the healthcare sector to safeguard their investments. This is because the demand for healthcare services does not vary so much with market conditions, making them a safe haven in difficult times. Many pharma companies also generate regular dividends, which go a long way in softening the blow dealt by plummeting share prices. 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 4 top-rated healthcare mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy), and we expect each fund to outperform its peers in the future. To view the Zacks Rank and past performance of all healthcare mutual funds, click here . Fidelity Select Pharmaceuticals Portfolio No Load (MUTF: FPHAX ) seeks growth of capital. The fund invests a lion’s share of its assets in securities of companies involved in operations, including manufacturing, distribution and development of pharmaceuticals and drugs. It generally focuses on acquiring common stocks of companies located throughout the globe. Factors including economic condition and financial strength are taken into consideration before investing in securities of a company. The Fidelity Select Pharmaceuticals Portfolio No Load is a non-diversified fund and has a three-year annualized return of 22.9%. Asher Anolic has been the fund manager of FPHAX since 2013. T. Rowe Price Health Sciences Fund No Load (MUTF: PRHSX ) invests a major portion of its assets in common stocks of companies whose primary operations are related to health sciences. It focuses on investing in large and mid-cap firms. The T. Rowe Price Health Sciences Fund No Load has a three-year annualized return of 30%. As of September 2015, PRHSX held 160 issues, with 4.97% of its assets invested in Allergan plc (NYSE: AGN ). Vanguard Health Care Fund Investor (MUTF: VGHCX ) seeks long-term capital growth. The fund invests a large chunk of its assets in securities of companies primarily involved in operations related to the healthcare domain. VGHCX invests in healthcare companies, including pharmaceutical firms, medical supply companies and companies engaged in operations related to medical and biochemical. It may invest a maximum of half of its assets in companies located in foreign lands. The Vanguard Health Care Fund Investor has a three-year annualized return of 26.8%. VGHCX has an expense ratio of 0.34%, as compared to the category average of 1.33%. Fidelity Select Medical Delivery Portfolio No Load (MUTF: FSHCX ) invests the majority of its assets in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. It focuses on acquiring common stocks of issuers all over the world. The Fidelity Select Medical Delivery Portfolio No Load fund has a three-year annualized return of 20.8%. As of October 2015, the fund held 47 issues, with 19.06% of its assets invested in UnitedHealth Group Inc (NYSE: UNH ). Original Post