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3 Healthcare Mutual Funds Worth Betting On

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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. 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 wide diversification and analytical insight.

Below, we share with you three healthcare mutual funds, viz.,Franklin Biotechnology Discovery Fund (FBDIX - 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.

Franklin Strategic Biotechnology Discovery Fund seeks capital appreciation. FBDIX invests in equity securities of biotechnology companies and discovery research firms worldwide, including therapeutics, drug delivery, gene therapy and other select medical companies. 

Franklin Strategic Biotechnology Discovery Fund has three-year annualized returns of 23.3%. FBDIX has an expense ratio of 1.01%

Fidelity Select Biotechnology fund seeks capital appreciation. FBIOX invests most of its assets in common stocks of companies 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 Select Biotechnology has three-year annualized returns of 17.2%. As of the end of August 2025, FBIOX held 162 issues, with 16.7% of its assets invested in AbbVie Inc.

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 a three-year annualized return of 17.9%. 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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