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3 Top-Ranked Healthcare Mutual Funds Poised for Strong Gains

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Investors often rely on the healthcare sector to safeguard their investments. This is because the demand for healthcare services does not vary too much with respect to market conditions, and thus, the sector offers sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate steady cash flows, 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 top-ranked Healthcare mutual funds, namely Fidelity Select Health Care (FSPHX - Free Report) , Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) and Fidelity Advisor Biotechnology Fund (FBTIX - 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 focuses on global healthcare stocks, investing in companies providing medical products or services. FSPHX advisors use fundamental analysis to evaluate financial strength, industry position and market conditions, while maintaining a non-diversified portfolio.

Fidelity Select Health Care has three-year annualized returns of 7.9%. As of August 2025, FSPHX held 117 issues, with 7.5% of its assets invested in Boston Scientific.

Fidelity Select Biotechnology Portfolio targets global biotechnology stocks, investing in companies driving scientific and technological advances, and applies fundamental analysis to assess financial health, industry standing and broader market conditions, while maintaining a non-diversified investment approach.

Fidelity Select Biotechnology Portfolio has three-year annualized returns of 16.9%. FBIOX has an expense ratio of 0.63%.

Fidelity Advisor Biotechnology Fund focuses on biotech-related stocks worldwide, targeting firms driving scientific and technological advances, using fundamental analysis to assess financial strength, industry position and broader market conditions, while maintaining a non-diversified portfolio.

Fidelity Advisor Biotechnology Fund has three-year annualized returns of 19.7%. Eirene Kontopoulos has been the fund manager of FBTIX since July 2018.

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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