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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 vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested. Many pharma companies also pay out regular dividends. Companies that consistently offer dividends are financially stable and generate steady cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) seeks long-term growth of capital and invests a bulk of its shares in securities of companies involved in the ownership and management of hospitals, nursing homes and health maintenance organizations. FSHCX also invests in companies that provide direct healthcare services. This non-diversified fund invests in common stocks of both U.S. and non-U.S. companies. Fidelity Select Health Care Services Portfolio has three-year annualized returns of 12.4%.
As of June 2019, FSHCX held 28 issues with 24.5% of its assets invested in UnitedHealth Group Inc.
Invesco Health Care Fund Investor Class (GTHIX - Free Report) seeks long-term capital appreciation. The fund invests most of its net assets in securities of companies engaged in healthcare-related industries. The fund mostly invests in equity securities, depositary receipts and securities convertible into equity securities. Invesco Health Care Fund Investor Class has three-year annualized returns of 6.8%.
GTHIX has an expense ratio of 1.10% compared with the category average of 1.23%.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has returned 12.6% on a year-to-date basis.
Ziad Bakri is the asset manager of PRHSX since 2016.
Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) seeks long-term growth of capital. The fund invests the majority of its assets in companies, which address unmet medical needs or make the health care system more efficient. The fund invests a minimum of 25% of its total assets in companies categorized under the life-sciences sector. Janus Henderson Global Life Sciences Fund has three-year annualized returns of 9.7%.
JNGLX has an expense ratio of 0.82% compared with the category average of 1.23%.
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4 Healthcare Funds to Grab Today
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 vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested. Many pharma companies also pay out regular dividends. Companies that consistently offer dividends are financially stable and generate steady cash flows irrespective of market conditions. Mutual funds are 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 four top-ranked healthcare mutual funds. 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 healthcare funds, their Zacks Rank and past performance.
Fidelity Select Health Care Services Portfolio (FSHCX - Free Report) seeks long-term growth of capital and invests a bulk of its shares in securities of companies involved in the ownership and management of hospitals, nursing homes and health maintenance organizations. FSHCX also invests in companies that provide direct healthcare services. This non-diversified fund invests in common stocks of both U.S. and non-U.S. companies. Fidelity Select Health Care Services Portfolio has three-year annualized returns of 12.4%.
As of June 2019, FSHCX held 28 issues with 24.5% of its assets invested in UnitedHealth Group Inc.
Invesco Health Care Fund Investor Class (GTHIX - Free Report) seeks long-term capital appreciation. The fund invests most of its net assets in securities of companies engaged in healthcare-related industries. The fund mostly invests in equity securities, depositary receipts and securities convertible into equity securities. Invesco Health Care Fund Investor Class has three-year annualized returns of 6.8%.
GTHIX has an expense ratio of 1.10% compared with the category average of 1.23%.
T. Rowe Price Health Sciences Fund (PRHSX - Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has returned 12.6% on a year-to-date basis.
Ziad Bakri is the asset manager of PRHSX since 2016.
Janus Henderson Global Life Sciences Fund (JNGLX - Free Report) seeks long-term growth of capital. The fund invests the majority of its assets in companies, which address unmet medical needs or make the health care system more efficient. The fund invests a minimum of 25% of its total assets in companies categorized under the life-sciences sector. Janus Henderson Global Life Sciences Fund has three-year annualized returns of 9.7%.
JNGLX has an expense ratio of 0.82% compared with the category average of 1.23%.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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