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 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 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 market various biotechnological products, services and processes. It also invests in companies that gain considerably from scientific and technological advances in biotechnology. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. The fund has returned 36.9% in a year.
As of Apr 30, 2020, FBIOX held 258 issues with 10.48% of its assets invested in AbbVie Inc.
Fidelity Select Pharmaceuticals Portfolio (FPHAX - Free Report) aims for capital growth. The fund invests the majority of its assets in securities of companies that research, develop and manufacture all types of pharmaceuticals and drugs. The non-diversified fund invests in securities of U.S. and non-U.S. issuers alike. FPHAX mostly invests in common stocks of companies. The fund has returned 32.1% in a year.
FPHAX has an expense ratio of 0.78% compared with the category average of 1.24%.
Putnam Global Health Care Fund Class A (PHSTX - Free Report) aims for growth of capital. The fund mostly invests in securities of medium- and large-capitalization companies that the fund manager deems ideal for investment. It invests the majority of its assets in securities of healthcare companies. PHSTX is a non-diversified fund that mostly invests in common stocks of companies. The fund has returned 27.5% in a year.
Michael Maguire is the fund manager of PHSTX since 2016.
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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