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3 Healthcare Mutual Funds That You Should Certainly Buy
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Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services’ demand does not vary much with market conditions and thus offers 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 the perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
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 18.6%.
Ziad Bakri is the fund manager of PRHSX since 2016.
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 14.7% in the past three years.
As of the end of August 2021, PHLAX held 87 issues with 6.71% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report) fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 23.6%.
FSMEX has an expense ratio of 0.70% compared with the category average of 1.03%.
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3 Healthcare Mutual Funds That You Should Certainly Buy
Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services’ demand does not vary much with market conditions and thus offers 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 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) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
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 18.6%.
Ziad Bakri is the fund manager of PRHSX since 2016.
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 14.7% in the past three years.
As of the end of August 2021, PHLAX held 87 issues with 6.71% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report) fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 23.6%.
FSMEX has an expense ratio of 0.70% compared with the category average of 1.03%.
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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