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Seeking Stable Returns? Here Are 3 Healthcare Mutual Funds

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One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services does not change with market conditions. Many pharmaceutical companies also pay out regular dividends.

Companies that consistently offer dividends are financially stable and generate steady cash flow, irrespective of market conditions. Mutual funds are the 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) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of healthcare funds, their Zacks Rank and past performance.

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 sports a Zacks Mutual Fund Rank #1 and has three-year annualized returns of 18.5%.

As of the end of March 2021, PRHSX held 174 issues with 6.17% of its assets invested in UnitedHealth Group Inc.

Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) fund invests the majority of assets in the securities of companies that are mostly engaged in the research, development, manufacture and distribution of biotechnological products and services. The fund also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in U.S. and non-U.S. issuers alike. The fund carries a Zacks Mutual Fund Rank of #2 and has returned 12.1% in the past three years.

FBIOX has an expense ratio of 0.70% compared with the category average of 1.03%.

Janus Henderson Global Life Sciences Fund Class D (JNGLX - Free Report) seeks long-term growth of capital. The fund invests the majority of its assets in companies that have a life science orientation. The fund invests a minimum of 25% of its total assets in companies categorized under the life-sciences sector. JNGLX sports a Zacks Mutual Funds Rank #1 and has three-year annualized returns of 16.5%.

Andrew Acker is the fund manager of JNGLX since 2007.

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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