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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 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) fund 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. FSHCX has three-year annualized returns of 9.9%.
As of the end of February 2020, FSHCX held 26 issues with 24.6% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report) fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 12.6%.
FSMEX has an expense ratio of 0.73% compared with the category average of 1.24%.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) fund mostly invests in common stocks. The non-diversified fund seeks capital appreciation. FBIOX invests the majority of its assets in securities of companies that are engaged in research, manufacture, distribution and marketing of biotechnological products and related services. The fund has returned 4.6% over the past three years.
Rajiv Kaul is the fund manager of FBIOX since 2005.
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3 Healthcare Mutual Funds Worth Investing In
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 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 three 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) fund 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. FSHCX has three-year annualized returns of 9.9%.
As of the end of February 2020, FSHCX held 26 issues with 24.6% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Medical Technology and Devices Portfolio (FSMEX - Free Report) fund aims for capital growth. It invests the majority of its assets in companies that are engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. The non-diversified fund invests in common stocks and in U.S. and non-U.S. issuers. FSMEX has three-year annualized returns of 12.6%.
FSMEX has an expense ratio of 0.73% compared with the category average of 1.24%.
Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) fund mostly invests in common stocks. The non-diversified fund seeks capital appreciation. FBIOX invests the majority of its assets in securities of companies that are engaged in research, manufacture, distribution and marketing of biotechnological products and related services. The fund has returned 4.6% over the past three years.
Rajiv Kaul is the fund manager of FBIOX since 2005.
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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