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3 Top-Ranked Healthcare Mutual Funds to Buy for Attractive 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 remains relatively stable, regardless of 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 Fidelity Advisor Biotechnology Fund (FBTIX - Free Report) , Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) and Vanguard Health Care Fund (VGHCX - 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 Advisor Biotechnology Fund invests most of its net assets in common stocks of foreign and domestic companies that are 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. FBTIX 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 conditions.

Fidelity Advisor Biotechnology Fund has five-year annualized returns of 9.6%. As of the end of January 2025, FBTIX held 75 issues, with 23.2% of its assets invested in ABBVIE.

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 6.6%. JNGLX has an expense ratio of 0.80%.

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 healthcare 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 five-year annualized returns of 2.9%. Rebecca Sykes has been the fund manager of VGHCX since May 2023.

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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