Back to top

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, then click here.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Biotech Ultra Sector

#1 Strong Buy

53.9%

Fidelity Select Biotechnology

#1 Strong Buy

32.3%

Rydex Biotechnology

#1 Strong Buy

31.0%

Franklin Biotechnology Discovery A

#1 Strong Buy

27.9%

T. Rowe Price Health Sciences

#1 Strong Buy

27.7%


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 has a three year annualized return of 24.87%.

The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.73% compared to a category average of 1.52%.

Fidelity Select Biotechnology (FBIOX - MF report) seeks capital growth. The fund invests the majority of its assets in biotechnology companies as well as those 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 has a three year annualized return of 24.99%.

Rajiv Kaul is the fund manager and has managed this healthcare mutual fund since 2005.

Rydex Biotechnology (RYOIX - MF report) utilises a minimum of 80% of its assets to purchase equity securities and derivatives issued by domestic biotechnology companies. It focuses on acquiring securities of small and mid-cap companies. The healthcare mutual fund has a three year annualized return of 21.53%.

As of August 2012, this healthcare mutual fund held 46 issues, with 9.98% of its total assets invested in Amgen Inc.

Franklin Biotechnology Discovery A (FBDIX - MF report) seeks capital growth. The fund invests a large proportion of its assets in biotechnology companies and discovery research companies. The fund focuses on acquiring equity securities, with an emphasis on common stock. Not more than 20% of its assets may be invested in securities of any kind of domestic or foreign issuer. The healthcare mutual fund has a three year annualized return of 20.61%.

The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.26% compared to a category average of 1.52%.

T. Rowe Price Health Sciences (PRHSX - MF report) invests heavily 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 has a three year annualized return of 22.85%.

Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.

To view the Zacks Rank and past performance of all healthcare mutual funds, then click here.

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

Please login to Zacks.com or register to post a comment.