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Best of Funds

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 the 5 best performing healthcare mutual funds year to date.  To view the Zacks Rank and past performance of all healthcare funds, investors can click here to see the complete list of funds.

 

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Biotech Ultra Sector

#4 Sell

26.4%

Rydex Biotechnology

#4 Sell

21.7%

Fidelity Select Biotechnology

#4 Sell

19.9%

Delaware Healthcare A

#3 Hold

18.6%

T. Rowe Price Health Sciences

#2 Buy

17.9%

 

ProFunds Biotechnology UltraSector (BIPSX - MF report) invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Biotechnology Index. The healthcare mutual fund is non-diversified and returned 26.63% over the last one year period.

Hratch Najarian is the fund manager and has managed this healthcare mutual fund since 2011.

Rydex Biotechnology (RYOIX - MF report) seeks capital growth. The fund invests a large share of its assets in equity securities and derivatives issued by domestic biotechnology companies. The fund is non-diversified and seeks long-term capital growth. The healthcare mutual fund returned 26.54% over the last one year period.

The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.39% compared to a category average of 1.57%.

Fidelity Select Biotechnology (FBIOX - MF report) invests the majority of its assets in companies seeking to benefit from advances in the biotechnological sector. It focuses on acquiring common stocks and may also purchases securities issued by foreign companies. The healthcare mutual fund returned 31.78% over the last one year period.

As of March 2012, this healthcare mutual fund held 147 issues, with 9.42% of its total assets invested in Gilead Sciences Inc.

Delaware Healthcare A (DLHAX - MF report) seeks capital growth. The fund invests the majority of its assets in the healthcare sector. The fund purchases equity of both domestic and foreign companies regardless of their size. It may also invest in emerging market stocks. The healthcare mutual fund returned 11.69% over the last one year period.

Liu-Er Chen is the fund manager and has managed this healthcare mutual fund since 2007.

T. Rowe Price Health Sciences (PRHSX - MF report) invests the majority of its assets in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund returned 16.43% over the last one year period.

The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.82% compared to a category average of 1.57%.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

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