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3 Healthcare Mutual Funds for Spectacular Returns

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Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends.

Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect 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., DWS Health and Wellness Fund (SCHLX - Free Report) , Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) and Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) . Each has earned a ZacksMutual 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.

DWS Health and Wellness Fund seeks long-term growth of capital by investing in common stocks of companies in the healthcare sector. SCHLX also invests in securities of U.S. companies, foreign companies, U.S. Treasury, and agency debt securities.

DWS Health and Wellness Fund has three-year annualized returns of 3.8%. SCHLX has an expense ratio of 0.98% compared with the category average of 1.03%.

Fidelity Select Health Care Services Portfolio seeks capital appreciation. FSHCX invests 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.

Fidelity Select Health Care Services Portfolio has three-year annualized returns of 9.8%. As of the end of May 2023, FSHCX held 27 issues, with 24.7% of its assets invested in Unitedhealth Group.

Janus Henderson Global Life Sciences Fund invests its net assets in securities issued by firms that the advisors believe have a life science emphasis. JNGLX has created a fundamental policy mandating a minimum investment of its total assets in securities issued by firms categorized under the "life sciences" sector.

Janus Henderson Global Life Sciences Fund has a three-year annualized return of 5.5%. Andy Acker has been the fund manager of JNGLX since April 2007.

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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