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3 Must-Have Healthcare Mutual Funds for Stellar Returns
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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 choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Fidelity Select Health Care Services Portfolio invests most of its net assets in common stocks of foreign and domestic companies that are engaged in ownership or management of hospitals, nursing homes, health maintenance organizations, and companies specializing in the delivery of health care services. FSHCX invests in stocks based on fundamental analysis factors like the issuer's financial condition, industry position, as well as market and economic condition.
Fidelity Select Health Care Services Portfolio has three-year annualized returns of 20.2%. As of May 2022, FSHCX held 38 issues, with 24.11% of its assets invested in Unitedhealth Group.
Vanguard Health Care Fund invests the majority of its net assets in common stocks of foreign and domestic companies that are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies as well as businesses that operate hospitals and other health care facilities. VGHCX advisors may also invest in companies that are engaged in medical, diagnostic, biochemical, and other research and development activities.
Vanguard Health Care Fund has three-year annualized returns of 10.6%. VGHCX has an expense ratio of 0.30% compared with the category average of 1.03%.
PGIM Jennison Health Sciences Fund seeks capital appreciation over time by investing most of its net 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 (HMO). PHLAX generally chooses to invest in companies, which derive at least 50% of their assets, revenues or profits from operations in the healthcare sector.
PGIM Jennison Health Sciences Fund has three-year annualized returns of 10.9%. Debra Netschert has been one of the fund managers of PHLAX since January 2015.
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3 Must-Have Healthcare Mutual Funds for Stellar Returns
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 choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds, namely Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) , Vanguard Health Care Fund (VGHCX - Free Report) and PGIM Jennison Health Sciences Fund (PHLAX - Free Report) . 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 invests most of its net assets in common stocks of foreign and domestic companies that are engaged in ownership or management of hospitals, nursing homes, health maintenance organizations, and companies specializing in the delivery of health care services. FSHCX invests in stocks based on fundamental analysis factors like the issuer's financial condition, industry position, as well as market and economic condition.
Fidelity Select Health Care Services Portfolio has three-year annualized returns of 20.2%. As of May 2022, FSHCX held 38 issues, with 24.11% of its assets invested in Unitedhealth Group.
Vanguard Health Care Fund invests the majority of its net assets in common stocks of foreign and domestic companies that are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies as well as businesses that operate hospitals and other health care facilities. VGHCX advisors may also invest in companies that are engaged in medical, diagnostic, biochemical, and other research and development activities.
Vanguard Health Care Fund has three-year annualized returns of 10.6%. VGHCX has an expense ratio of 0.30% compared with the category average of 1.03%.
PGIM Jennison Health Sciences Fund seeks capital appreciation over time by investing most of its net 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 (HMO). PHLAX generally chooses to invest in companies, which derive at least 50% of their assets, revenues or profits from operations in the healthcare sector.
PGIM Jennison Health Sciences Fund has three-year annualized returns of 10.9%. Debra Netschert has been one of the fund managers of PHLAX since January 2015.
To view the Zacks Rank and the past performance of all Healthcare mutual funds, investors can click here to see the complete list of healthcare mutual funds.
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