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Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary much with market conditions. Also, investments in the sector provide sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 14.4%.
Ziad Bakri is the fund manager of PRHSX since 2016.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that research, develop, manufacture and market various biotechnological products, services and processes. It also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. The fund has returned 13.4% in the past three years.
As of the end of May 2020, FBIOX held 262 issues with 9.2% of its assets invested in AbbVie Inc.
Vanguard Health Care Fund Investor Shares (VGHCX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in securities of companies engaged in various activities in the healthcare industry. It invests in securities of both U.S. and non-U.S. issuers alike. VGHCX has three-year annualized returns of 9.3%.
VGHCX has an expense ratio of 0.32% compared with the category average of 1.26%.
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3 Healthcare Mutual Funds for Attractive Returns
Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary much with market conditions. Also, investments in the sector provide sufficient protection to the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices 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. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (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 (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 14.4%.
Ziad Bakri is the fund manager of PRHSX since 2016.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that research, develop, manufacture and market various biotechnological products, services and processes. It also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. The fund has returned 13.4% in the past three years.
As of the end of May 2020, FBIOX held 262 issues with 9.2% of its assets invested in AbbVie Inc.
Vanguard Health Care Fund Investor Shares (VGHCX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in securities of companies engaged in various activities in the healthcare industry. It invests in securities of both U.S. and non-U.S. issuers alike. VGHCX has three-year annualized returns of 9.3%.
VGHCX has an expense ratio of 0.32% compared with the category average of 1.26%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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