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Buy These 3 Healthcare Mutual Funds to Strengthen Your Portfolio

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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. Among the sector players, 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 broad diversification and analytical insight.

Below, we share with you three healthcare mutual funds, namely Franklin Biotechnology Discovery Fund (FBDIX - Free Report) , Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) and Fidelity Advisor Health Care (FACTX - 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.

Franklin Biotechnology Discovery Fund invests most of its net assets in equity securitiesof biotechnology companies and discovery research firms. FBDIX advisors may also invest a small portion of its net assets in net assets in equity or debt securities of any type of issuer.

Franklin Biotechnology Discovery Fund has three-year annualized returns of 7.8%. As of the end of January 2025, FBDIX held 81 issues, with 6.7% of its assets invested in Amgen.

Janus Henderson Global Life Sciences Fund invests most of its assets, along with borrowings, if any, in securities of companies that, according to its portfolio managers, have a life science orientation. JNGLX has a fundamental policy to invest at least a small portion of its assets in companies that belong to the "life sciences" sector.

Janus Henderson Global Life Sciences Fund has five-year annualized returns of 7.3%. JNGLX has an expense ratio of 0.80%.

Fidelity Advisor Health Care fund invests the majority 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. FACTX advisors choose to invest in stocks based on fundamental analysis factors such as the issuer's financial condition, industry position, as well as market and economic conditions.

Fidelity Advisor Health Care fund has five-year annualized returns of 3.4%. Edward Yoonhas been the fund manager of FACTX since October 2008.

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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