Back to top

Image: Bigstock

3 Healthcare Mutual Funds for Stunning Returns

Read MoreHide Full Article

One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services does not vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested. Many pharma companies also pay out regular dividends. Companies that consistently offer dividends are financially stable and generate steady 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) and is expected to outperform its peers in the future. Investors can click here to see the complete list of healthcare funds, their Zacks Rank and past performance.

Janus Henderson Global Life Sciences Fund Class T (JAGLX - Free Report) invests in securities of companies that have a life science orientation. JAGLX invests a minimum of one-fourth of its assets in securities issued by companies that are categorized in the life sciences sector. JAGLX has three-year annualized returns of 16.1%.

As of September 2019, JAGLX held 94 issues with 4.61% of its assets invested in Merck & Co Inc.

Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report) fund aims for capital growth. The fund invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies etc. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 23.7%.

FSMEX has an expense ratio of 0.73% compared with the category average of 1.26%.

Invesco Health Care Fund Investor Class (GTHIX - Free Report) fund seeks long-term capital appreciation. The fund invests most of its net assets in securities of companies engaged in healthcare-related industries. It mostly invests in equity securities, depositary receipts and securities convertible into equity securities. GTHIX has three-year annualized returns of 12.8%.

Henry Wu is the fund manager of GTHIX since 2017.

To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.

Want key mutual fund info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>

Published in