Healthcare mutual funds provide excellent choices for investors looking to enter into this safe-haven sector as they protect their investments during a market downturn. The healthcare sector does not vary with market conditions and is thus one of the most desirable avenues during difficult times. Also, several pharmaceutical companies have a history of paying regular dividends, which can help to offset the blow resulting from plummeting share prices.  

 

Below, we share with you three healthcare mutual funds, viz., Fidelity Select Health Care (FSPHX Quick QuoteFSPHX - Free Report) , Franklin Biotechnology Discovery Fund (FBDIX Quick QuoteFBDIX - Free Report) and Fidelity Advisor Biotechnology Fund (FBTIX Quick QuoteFBTIX - 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 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 6.1%. Edward Yoon has been the fund manager of FSPHX since October 2008.

 

Franklin Biotechnology Discovery Fund seeks capital appreciation. FBDIX invests most of its net assets in equity securities of biotechnology companies and discovery research firms.

 

Franklin Biotechnology Discovery Fund has a three-year annualized return of 17.7%. As of July 2025, FBDIX held 77 issues, with 7.5% of its assets invested in Gilead Sciences, Inc.

 

Fidelity Advisor Biotechnology Fund seeks capital appreciation. FBTIX 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.

 

Fidelity Advisor Biotechnology Fund has three-year annualized returns of 15.3%. FBTIX has an expense ratio of 0.71% compared with the category average of 93%.

 

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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