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3 Top-Ranked Healthcare Mutual Funds for a Defensive 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 Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) , Fidelity Select Health Care (FSPHX - Free Report) and Fidelity Care Services Portfolio (FSHCX - 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.

Janus Henderson Global Life Sciences Fund invests most of its assets, along with borrowings, if any, in securities of companies that, according to its portfolio managers, have a life science orientation. JNGLX has a fundamental policy to invest at least a small portion of its assets in companies that belong to the life sciences sector.

Janus Henderson Global Life Sciences Fund has five-year annualized returns of 14.9%. As of the end of March 2026, JNGLX held 81 issues, with 8.9% of its assets invested in ELI LILLY.

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 13.3%. FSPHX has an expense ratio of 0.62%.

Fidelity Care Services Portfolio fund invests most of its net assets in common stocks of foreign and domestic companies that are engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and companies specializing in the delivery of healthcare services. FSHCX invests in stocks based on fundamental analysis factors like the issuer's financial condition, industry position, as well as market and economic conditions.

Fidelity Care Services Portfolio fund has five-year annualized returns of 2.9%. Harrison Kenner has been the fund manager of FSHCX since February 2025.

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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