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3 Healthcare Mutual Funds to Buy for Consistent 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.

Below, we share with you three healthcare mutual funds, namely Fidelity Select Biotechnology (FBIOX - Free Report) , Fidelity Select Health Care Portfolio (FSPHX - Free Report) and Fidelity Select Medical Technology (FSMEX - 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 Biotechnology fund invests most of its net assets in common stocks of foreign and domestic companies principally engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes and companies that benefit significantly from scientific and technological advances in biotechnology. FBIOX advisors choose to invest in stocks based on fundamental analysis factors like the issuer's financial condition, industry position, as well as market and economic condition.

Fidelity Select Biotechnology fund has three-year annualized returns of 8.2%. As of the end of November 2024, FBIOX held 172 issues, with 11.5% of its assets invested in AbbVie.

Fidelity Select Health Care Portfolio invests most of its net assets in common stocks of foreign and domestic companies that are engaged in the design, manufacture or sale of products or services used for or in connection with health care or medicine. FSHCX invests in stocks based on fundamental analysis factors, including the issuer's financial condition, industry position, as well as market and economic conditions.

Fidelity Select Health Care Portfolio has three-year annualized returns of 3.7%. FSPHX has an expense ratio of 0.63%.

Fidelity Select Medical Technology and Devices Portfolio fund invests most of its net assets in common stocks of foreign and domestic companies that are principally engaged in the research, development, manufacture, distribution, supply, or sale of medical equipment, devices, and related technologies, companies enabling drug discovery. FSMEX advisors also invest in companies providing information technology services primarily to healthcare providers.

Fidelity Select Medical Technology and Devices Portfolio fund has three-year annualized returns of 0.4%. Edward Yoon has been the fund manager of FSMEX since May 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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