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Play These 3 Healthcare Funds for Fantastic Returns

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Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary much with market conditions. Also, investments in the sector provide sufficient protection to the capital invested.

Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate consistent 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 funds.

Fidelity Select Health Care Portfolio (FSPHX - Free Report) is a non-diversified fund that aims for capital appreciation. The fund invests the majority of its assets in common stocks of companies engaged in designing, manufacturing, or sale of products or services related to healthcare or medicine. FSPHX has three-year annualized returns of nearly 17%.

Edward L. Yoon is the fund manager of FSPHX since 2008.

PGIM Jennison Health Sciences Fund- Class A (PHLAX - Free Report) aims for long-term capital appreciation. This non-diversified fund invests the majority of its assets in equity and equity-related securities of companies within the health sciences sector, such as pharmaceutical companies, biotechnology companies, medical device manufacturers, healthcare service providers and health maintenance organizations. PHLAX has returned 11.5% in the past three years.

As of the end of August 2020, PHLAX held 84 issues with 3.89% of its assets invested in UnitedHealth Group Inc.

Franklin Biotechnology Discovery Fund Class A (FBDIX - Free Report) is a non-diversified that aims for capital appreciation. The fund invests the majority of its assets in equity securities of biotechnology companies and discovery research firms. FBDIX has three-year annualized returns of 7.2%.

FBDIX has an expense ratio of 1.02% compared with the category average of 1.26%.

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

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