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3 Top-Ranked Healthcare Mutual Funds to Add to 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 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 seeking to enter this sector, as they have 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) , Fidelity Select Health Care (FSPHX - 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 such as the issuer's financial condition, industry position, as well as market and economic conditions.

Fidelity Advisor Biotechnology Fund has five-year annualized returns of 10.6%. As of the end of April 2025, FBTIX held 82 issues, with 19.3% of its assets invested in ABBVIE.

Fidelity Select Health Care fund 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 healthcare or medicine. FSPHX 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 fund has three-year annualized returns of 4.2%. FSPHX has an expense ratio of 0.63%.

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 4.1%. 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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