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3 Top-Ranked Healthcare Funds to Buy for Outstanding 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 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 choices 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 Franklin Biotechnology Discovery Fund (FBDIX - Free Report) , Fidelity Select Pharmaceuticals Portfolio (FPHAX - Free Report) and Fidelity Select Biotechnology Portfolio (FBIOX - 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 Biotechnology Discovery Fund primarily invests in biotechnology and discovery research companies, mainly through equities. It may also invest in other issuers’ equity or debt securities and follows a non-diversified strategy.

Franklin Biotechnology Discovery Fund has three-year annualized returns of 26%. As of January 2026, FBDIX held 81 issues, with 6.2% of its assets invested in Gilead Sciences.

Fidelity Select Pharmaceuticals Portfolio primarily invests in pharmaceutical and drug-related companies worldwide, mainly through common stocks. Investment selection is based on fundamental analysis of company, industry, market and economic factors. It is non-diversified.

Fidelity Select Pharmaceuticals Portfolio has three-year annualized returns of 18.5%. FPHAX has an expense ratio of 0.67%.

Fidelity Select Biotechnology Portfolio primarily invests in common stocks of biotechnology companies worldwide, focusing on firms advancing or benefiting from biotechnology innovation. Investments are selected through fundamental analysis of company, industry, market and economic factors. It is non-diversified.

Fidelity Select Biotechnology Portfolio has three-year annualized returns of 18.9%. Rajiv Kaul has been the fund manager of FBIOX since October 2005.

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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