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3 Healthcare Mutual Funds That You Must Add to Your Portfolio
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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 a 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.
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 carries a Zacks Mutual Fund Rank of #1 and has three-year annualized returns of 17.9%.
As of the end of June 2021, FSPHX held 129 issues with 9.1% 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 sports a Zacks Mutual Fund Rank of #2 and has returned 13% in the past three years.
FBIOX has an expense ratio of 0.70% compared with the category average of 1.03%.
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 carries a Zacks Mutual Fund Rank of #1 and has returned 15.8% in the past three years.
David Chan is the fund manager of PHLAX since 1999.
Image: Bigstock
3 Healthcare Mutual Funds That You Must Add to Your Portfolio
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 a 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.
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 carries a Zacks Mutual Fund Rank of #1 and has three-year annualized returns of 17.9%.
As of the end of June 2021, FSPHX held 129 issues with 9.1% 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 sports a Zacks Mutual Fund Rank of #2 and has returned 13% in the past three years.
FBIOX has an expense ratio of 0.70% compared with the category average of 1.03%.
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 carries a Zacks Mutual Fund Rank of #1 and has returned 15.8% in the past three years.
David Chan is the fund manager of PHLAX since 1999.
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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