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3 Funds to Gain From Antiviral Drug Therapies

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The unprecedented novel coronavirus is taking a huge toll on the world and biotechnology and healthcare companies are rushing to find a cure. Experts have opined that antiviral drug therapy is one of the most effective methods of combating COVID-19.

Anti-Viral Drugs Paint a Promising Picture

The FDA started to work directly with federal health partners, educational institutions and major industry players to fight COVID-19 soon after its emergence. Given the urgency to find a cure to the pandemic, the FDA initiated a new program called the Coronavirus Treatment Acceleration Program to treat coronavirus patients as fast as possible.

As of now, 72 clinical trials of possible therapies for the novel coronavirus are in progress. Out of these trials, one study which comprises direct-acting antiviralswas found to be effective to a large extent.

Furthermore, an assessment conducted in February by the World Health organizationalso confirmed the effectiveness of antivirals in treating COVID-19.

Prospect of Global Anti-Viral Drug Therapy Market is Bright

Considering the aforementioned developments, let us now take a look at the global anti-viral drug therapy market. The market is expected to grow to about $59.9 billion in 2020 from $52.2 billion in 2019, owing to the rise in demand for antiretroviral drugs which are used in the treatment of coronavirus patients. The market is expected to stabilize and reach $62.6 billion at a compound annual growth rate of 4.6% through 2023.

Mutual fund investors who wish to make the most of this growth of the anti-viral drug therapy market can consider a few funds that invest in companies that are currently working in the arena of antiviral drug therapy.

3 Funds to Buy

We have, therefore, selected three mutual funds that have invested in securities of companies such asAbbVie Inc, Bristol-Myers Squibb Company and Medtronic PLC, all of which are committed to finding a cure for the current pandemic.. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy). In addition, the minimum initial investment for these funds is within $5,000.

We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that research, develop, manufacture and distribute various biotechnological products and services. FBIOX is a non-diversified fund. AbbVie Inc, which is a major player in the anti-viral drug therapy market, is among FBIOX’s top holdings. FBIOX carries a Zacks Mutual Fund Rank #1.

This Zacks Sector – Health has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FBIOX has an annual expense ratio of 0.72%, which is below the category average of 1.24%. It has returned 4.6% over the past three years. The fund has no minimum initial investment.

Hartford Healthcare HLS Fund Class IA (HIAHX - Free Report) aims for long-term capital growth. The fund invests the majority of its assets in securities of healthcare-related companies. The fund invests across companies of all market capitalizations.Bristol-Myers Squibb Company and Medtronic PLC are among the fund’s top holdings. These companies have operations in the area of antiviral drug therapy. HIAHX carries a Zacks Mutual Fund Rank #2.

This Zacks Sector – Health has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

HIAHX has an annual expense ratio of 0.89%, which is below the category average of 1.24%. It has returned 6.9% over the past three years. The fund has no minimum initial investment.

Fidelity Advisor Biotechnology Fund Class A (FBTAX - Free Report) aims for capital appreciation. The fund invests the majority of its assets in securities of companies that are engaged in the research, development, manufacture and distribution of several biotechnological products and services etc. These companies are well positioned to benefit considerably from scientific and technological advances in biotechnology.FBTAX is a non-diversified fund.  AbbVie Incis among FBTAX’s top holdings. FBTAX carries a Zacks Mutual Fund Rank #2.

This Zacks Sector – Health has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

FBTAX has an annual expense ratio of 1.04%, which is below the category average of 1.24%. It has returned 5.6% over the past three years. The fund has no minimum initial investment.

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