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Investors often rely on the healthcare sector for safeguarding their investments. This is because healthcare services’ demand does not vary much with 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 stable 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.
Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) fund seeks long-term growth of capital and invests the bulk of its shares in securities of companies involved in ownership and management of hospitals, nursing homes and health maintenance organizations. FSHCX also invests in companies that provide direct healthcare services. This non-diversified fund invests in common stocks of both U.S. and non-U.S. companies. FSHCX has three-year annualized returns of 14.6%.
Justin Segalini is the fund manager of FSHCX since 2016.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 19.4%.
As of the end of December 2020, PRHSX held 162 issues with 6.4% of its assets invested in UnitedHealth Group Inc.
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 18.6%.
FSPHX has an expense ratio of 0.70% compared with the category average of 1.21%.
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3 Healthcare Mutual Funds for a Healthy Portfolio
Investors often rely on the healthcare sector for safeguarding their investments. This is because healthcare services’ demand does not vary much with 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 stable 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 Services Portfolio (FSHCX - Free Report) fund seeks long-term growth of capital and invests the bulk of its shares in securities of companies involved in ownership and management of hospitals, nursing homes and health maintenance organizations. FSHCX also invests in companies that provide direct healthcare services. This non-diversified fund invests in common stocks of both U.S. and non-U.S. companies. FSHCX has three-year annualized returns of 14.6%.
Justin Segalini is the fund manager of FSHCX since 2016.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 19.4%.
As of the end of December 2020, PRHSX held 162 issues with 6.4% of its assets invested in UnitedHealth Group Inc.
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 18.6%.
FSPHX has an expense ratio of 0.70% compared with the category average of 1.21%.
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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