Back to top

Image: Bigstock

3 Healthcare Mutual Funds for Spectacular Returns

Read MoreHide Full Article

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, viz., Health Care Services Portfolio (FSHCX - Free Report) , Schwab Health Care Fund (SWHFX - Free Report) , and T. Rowe Price Health Sciences Fund (PRHSX - 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.

Health Care Services Portfolio seeks to achieve capital appreciation. FSHCX invests most of its assets in common stocks of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of healthcare services.

Health Care Services Portfolio has three-year annualized returns of 12.8%. FSHCX has an expense ratio of 0.73% compared with the category average of 1.03%.

Schwab Health Care Fund seeks long-term capital growth, primarily investing its assets in securities issued by companies in the health healthcare sector. SWHFX advisors choose to invest in common stocks and other equity securities of foreign companies.

Schwab Health Care Fund has three-year annualized returns of 10%. As of the end of January 2023, SWHFX held 81 issues, with 5.5% of its assets invested in Unitedhealth Group.

T. Rowe Price Health Sciences Fund seeks to achieve a long-term capital appreciation by investing in common stocks of companies engaged in the research, development, production, or distribution of products or services related to healthcare, medicine, or the life sciences. PRHSX advisors may also invest inlarge and mid mid-capitalization companies.

T. Rowe Price Health Sciences Fund has three-year annualized returns of 9.9%. Ziad Bakri has been the fund manager of PRHSX since April 2016.

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.

Want key mutual fund info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity Select Health Care Svcs (FSHCX) - free report >>

T. Rowe Price Health Sciences (PRHSX) - free report >>

Schwab Health Care (SWHFX) - free report >>

Published in