Of late the healthcare sector has witnessed heavy competition on
account of short product pipelines and patent wars. However, the
sector has often been regarded as "safe" by many investors.
Traditionally, many investors seek solace in defensive sectors such
as healthcare during a downturn. The sector is characterized by
steady demand for their products, high revenue and abundant cash
flows making it a secure sector. Healthcare mutual funds provide an
excellent opportunity for investors seeking exposure to this
space.
Below we will share with you 5 top rated health mutual funds.
Each has earned a
Zacks #1
Rank
(Strong Buy) as we expect these mutual funds to outperform their
peers in the future. To view the Zacks Rank and past
performance of all health funds, investors can
click here to see the complete list of funds
.
Fidelity Select Health Care
(
FSPHX
) seeks capital growth. The fund invests the majority of its assets
in companies whose principal operations include production, design
and sales of health care related products or services. It focuses
on acquiring common stocks and purchases both domestic and foreign
securities. The healthcare mutual fund returned 4.96% over the last
one year period.
The healthcare mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.80% compared to a category average
of 1.55%.
Invesco Global Health Care A
(
GGHCX
) invests primarily in companies from the health care sector. The
fund purchases securities from issuers located in at least three
countries, including the US. Up to 50% of its assets may be
invested in any one country, apart from the US. The healthcare
mutual fund has a three year annualized return of 3.3%.
Derek Taner is the fund manager and has managed this healthcare
mutual fund since 2005.
Kinetics Medical No Load
(
MEDRX
) seeks capital appreciation over the long term. A large share of
the fund's assets is invested in companies whose principal
operations are related to medical research, related technology
industries. It focusing on companies engaged in cancer research and
drug discovery. The healthcare mutual fund returned -4.24% in the
last one year period.
As of March 2012, this healthcare mutual fund held 52 issues,
with 6.58% of its total assets invested in Life Technologies
Corp.
Saratoga Health & Biotechnology A
(
SHPAX
) invests heavily in stocks of domestic and foreign healthcare and
biotech firms of all sizes. Common and preferred stocks and related
convertible securities constitute the fund's major investments. The
healthcare mutual fund returned 2.95% in the last one year
period.
The healthcare mutual fund has a minimum initial investment of
$250 and an expense ratio of 2.73% compared to a category average
of 1.55%.
Live Oak Health Sciences
(
LOGSX
) seeks capital growth over the long term. The fund invests heavily
in companies from the health sciences sector. It focuses on
acquiring equity securities, focusing on purchasing domestic common
stock. It may also invest in foreign common stocks and ADRs. The
healthcare mutual fund returned -0.9% in the last one year
period.
Mark W. Oelschlager is the fund manager and has managed this
healthcare mutual fund since 2001.
To view the Zacks Rank and past performance of all health mutual
funds, investors can
click here to see the complete list of funds
.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
http://www.zacks.com/funds
.
View All Zacks #1 Ranked Mutual Funds
(FSPHX): ETF Research Reports
(GGHCX): ETF Research Reports
(LOGSX): ETF Research Reports
(MEDRX): ETF Research Reports
(SHPAX): ETF Research Reports
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