When markets are in 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 pharmaceutical 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 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.
Fidelity Select Biotechnology (FBIOX - Free Report) seeks growth of capital. FBIOX invests the majority of its assets in securities of companies principally engaged in the research, development, manufacture, and distribution of various biotechnological products. FBIOX invests in domestic and foreign issuers. Fidelity Select Biotechnology has a five-year annualized return of 20.4%.
Rajiv Kaul is the lead manager and has managed FBIOX since 2005.
Franklin Biotechnology Discovery A (FBDIX - Free Report) invests the lion’s share of its assets in securities of companies from the biotechnology domain. FBDIX primarily invests in common stocks of companies throughout the globe. FBDIX may invest a maximum of one-fifth of its assets in debt securities. Franklin Biotechnology Discovery A is a non-diversified fund and has a five-year annualized return of 19.1%.
As of Sep 2016, FBDIX held 116 issues with 8.9% of its assets invested in Celgene Corp.
Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) seeks appreciation of capital. FSHCX invests the bulk of its assets in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. The fund focuses on acquiring common stocks of issuers all over the world. Fidelity Select Health Care Services Portfolio has a five-year annualized return of 14.4%.
FSHCX has an expense ratio of 0.77% compared with the category average of 1.33%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of healthcare funds.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
When markets are in 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 pharmaceutical 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 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.
Fidelity Select Biotechnology (FBIOX - Free Report) seeks growth of capital. FBIOX invests the majority of its assets in securities of companies principally engaged in the research, development, manufacture, and distribution of various biotechnological products. FBIOX invests in domestic and foreign issuers. Fidelity Select Biotechnology has a five-year annualized return of 20.4%.
Rajiv Kaul is the lead manager and has managed FBIOX since 2005.
Franklin Biotechnology Discovery A (FBDIX - Free Report) invests the lion’s share of its assets in securities of companies from the biotechnology domain. FBDIX primarily invests in common stocks of companies throughout the globe. FBDIX may invest a maximum of one-fifth of its assets in debt securities. Franklin Biotechnology Discovery A is a non-diversified fund and has a five-year annualized return of 19.1%.
As of Sep 2016, FBDIX held 116 issues with 8.9% of its assets invested in Celgene Corp.
Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) seeks appreciation of capital. FSHCX invests the bulk of its assets in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. The fund focuses on acquiring common stocks of issuers all over the world. Fidelity Select Health Care Services Portfolio has a five-year annualized return of 14.4%.
FSHCX has an expense ratio of 0.77% compared with the category average of 1.33%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of healthcare 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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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