3 Healthcare Mutual Funds for Excellent Returns

VGHCX PRHSX FPHAX

Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.

Below, we share with you three healthcare mutual funds, namely Fidelity Select Pharmaceuticals Portfolio (FPHAX - Free Report) , T. Rowe Price Health Sciences Fund (PRHSX - Free Report) and Vanguard Health Care Fund (VGHCX - Free Report) . 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 funds.

Fidelity Select Pharmaceuticals Portfolio invests most of its net assets in common stocks of foreign and domestic companies that are engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. FPHAX invests in stocks based on fundamental analysis factors like the issuer's financial condition, industry position, as well as market and economic condition.

Fidelity Select Pharmaceuticals Portfolio has three-year annualized returns of 13.7%. As of February 2022, FPHAX held 67 issues, with 13.91% of its assets invested in Eli Lilly & Co.

T. Rowe Price Health Sciences Fund invests most of its assets along with borrowings, if any, in common stocks of companies engaged in the research, development, production, or distribution of products or services related to health care, medicine, or life sciences. PRHSX advisors invest preferably in large- and mid-capitalization companies.

T. Rowe Price Health Sciences Fund has three-year annualized returns of 12.6%. PRHSX has an expense ratio of 0.75% compared with the category average of 1.03%.

Vanguard Health Care Fund seeks to invest the majority of its net assets in common stocks of foreign and domestic companies that are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies as well as businesses that operate hospitals and other health care facilities. VGHCX advisors may also invest in companies that are engaged in medical, diagnostic, biochemical, and other research and development activities.

Vanguard Health Care Fund has three-year annualized returns of 12.0%. Jean M Hynes has been the fund manager of VGHCX since May 2008.

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

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