5 Top-Rated Healthcare Mutual Funds To Add To Your Portfolio
Healthcare mutual funds provide excellent choices for investors looking to enter this safe-haven sector, which is likely to protect their investment during a market downturn. The healthcare sector has proven to be one of the most desirable avenues during difficult times as it does not vary with market conditions. Also, several pharmaceutical companies have a history of paying regular dividends, which can help to offset the losses from plummeting share prices. Below we will share with you 5 top-ranked healthcare mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. Fidelity Select Health Care Portfolio (MUTF: FSPHX ) seeks capital growth over the long run. FSPHX invests a major portion of its assets in companies involved in designing, manufacturing and selling healthcare products and services. FSPHX invests in companies across the world. The Fidelity Select Health Care Portfolio is a non-diversified fund and has returned 10.6% over the past one year. FSPHX has an expense ratio of 0.74% as compared to a category average of 1.35%. Fidelity Select Biotechnology Portfolio (MUTF: FBIOX ) invests a large share of its assets in companies primarily involved in research, development, manufacture and distribution of various biotechnological products. Factors such as financial strength and economic conditions are considered to invest in companies located anywhere in the world. The Fidelity Select Biotechnology Portfolio is a non-diversified fund and has returned 22.7% over the past one year. Rajiv Kaul is the fund manager and has managed FBIOX since 2005. Turner Medical Sciences Long/Short C (MUTF: TMSCX ) seeks capital appreciation. TMSCX invests a major chunk of its assets in healthcare firms. TMSCX uses a long/short growth strategy for reduction of volatility and capital preservation during a market downturn. TMSCX mainly focuses on acquiring securities of companies having market capitalizations greater than $250 million. TMSCX is expected to maintain a portfolio of 15 to 75 securities long, and 15 to 75 securities short. The Turner Medical Sciences Long/Short C has returned 11.1% over the past one year. TMSCX has an expense ratio of 1.50% as compared to a category average of 1.84%. Fidelity Select Medical Delivery Portfolio (MUTF: FSHCX ) invests largely in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. FSHCX focuses on acquiring common stocks of both US and non-US companies. The Fidelity Select Medical Delivery Portfolio fund is non-diversified and has returned 19.9% over the last one-year period. Steven Bullock is the fund manager and has managed FSHCX since 2012. Fidelity Select Medical Equipment & Systems (MUTF: FSMEX ) seeks capital growth. FSMEX invests the majority of its assets in companies that are primarily involved in medical equipment and devices and the related technologies sector. FSMEX focuses on acquiring common stocks of companies by analyzing factors including financial strength and economic condition. FSMEX invests in both US and non-US companies. The Fidelity Select Medical Equipment & Systems is a non-diversified fund and has returned almost 14.3% over the past one year. As of August 2015, FSMEX held 55 issues with 23.57% of its assets invested in Medtronic PLC. Original Post