5 Healthcare Mutual Funds To Strengthen Your Portfolio – Mutual Fund Commentary
When markets are passing 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 with market conditions, making them a safe haven during 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 will share with you 5 potential health mutual funds . Each has earned either a Zacks #1 Rank (Strong Buy) or Zacks #2 Rank (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all health funds, investors can click here to see the complete list of funds . Putnam Global Health Care A (MUTF: PHSTX ) seeks capital growth. The fund primarily invests in growth, value stocks or either type of stocks of mid and large cap healthcare companies. The companies may be ones that provide health care related services, or those who develop or manufacture pharmaceuticals and biotechnology products. The non-diversified healthcare mutual fund returned 31.9% over the last one year. The fund has an expense ratio of 1.14% as compared to category average of 1.43%. Fidelity Select Medical Delivery Portfolio (MUTF: FSHCX ) invests largely in companies that own or are involved in operating hospital and nursing homes, and are related to health care services sector. The fund focuses on acquiring common stocks of both U.S. and non U.S. companies. The non-diversified healthcare fund returned 26.9% over the last one year period. Steven Bullock is the fund manager and has managed this healthcare mutual fund since 2012. T. Rowe Price Health Sciences (MUTF: PRHSX ) seeks capital growth over the long run. It invests the majority of its assets in common stocks of companies whose primary operations are related to health sciences. The fund focuses on investing in large and mid-cap firms. It may also invest in non U.S. securities. The healthcare mutual fund returned 35.8% over the last one year period. As of September 2014, this fund held 155 issues with 5.57% of its assets invested in Gilead Sciences Inc. Prudential Jennison Health Sciences A (MUTF: PHLAX ) utilizes the bulk of its assets to purchase equity securities of companies in the health sciences sector. It invests in companies all over the globe. It may also invest in IPOs. The fund may invest over 5% of assets in a single issuer. The non-diversified healthcare fund returned 40.4% over the last one year period. The fund has an expense ratio of 1.18% as compared to category average of 1.43%. Franklin Biotechnology Discovery A (MUTF: FBDIX ) seeks long-term capital growth. The fund invests a lion’s share of its assets in companies involved in biotechnology and discovery research activities. Additionally, the company may invest a maximum of 20% of its assets in securities issued by foreign or domestic companies. The non-diversified healthcare fund returned 37.9% over the last one year period. As of September 2014, this fund held 112 issues with 9.29% of its assets invested in Celgene Corporation.