When markets are passing through choppy waters, investors
often rely on the healthcare sector to safeguard their
investments. This is because the demand for healthcare services
does not vary with market conditions, making them a safe haven
during difficult times. Many pharma companies also generate
regular dividends, which go a long way in softening the blow
dealt by plummeting share prices. Mutual funds are the perfect
choice for investors looking to enter this sector since they
possess the advantages of wide diversification and analytical
insight.
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.
Putnam Global Health Care A
(PHSTX) invests predominantly in common stocks of large and mid
size companies from the health care sector across the world. The
fund may purchase both growth and value stocks. The healthcare
mutual fund has a three year annualized return of 9.54%.
Kelsey Chen is the fund manager and has managed this
healthcare mutual fund since 2005.
Prudential Jennison Health Sciences A
(PHLAX) seeks capital growth over the long term. It invests
heavily in equity and related securities and its portfolio may
include pharmaceutical companies, biotech firms, service
providers and medical device manufacturers. The healthcare mutual
fund has a three year annualized return of 24.20%.
As of October 2012, this healthcare mutual fund held 86
issues, with 6.04% of its total assets invested in Alexion
Pharmaceuticals, Inc.
Schwab Health Care
(SWHFX) invests a large proportion of its assets in the
healthcare sector. It mainly invests in equity securities but may
also invest in derivatives. The fund focuses on investing in
domestic firms, but may invest up to 25% of its assets in other
countries. The healthcare mutual fund has a three year annualized
return of 16.49%.
The healthcare mutual fund has an expense ratio of 0.81%
compared to a category average of 1.52%.
Eaton Vance Worldwide Health Sciences A
(ETHSX) seeks long-term capital appreciation. The fund focuses on
investing in medical research and the healthcare sector. It
invests the majority of its assets in companies which are
primarily engaged in scientific development in the healthcare
sector. A maximum of 5% of its assets may be utilized to purchase
royalty bonds. The healthcare mutual fund has a three year
annualized return of 13.32%.
Samuel D. Isaly is the fund manager and has managed this
healthcare mutual fund since 1985.
Biotechnology UltraSector ProFund Service
(BIPSX) invests in equity securities and derivatives which
together should provide daily returns which are 150% of the daily
return of the Dow Jones U.S. Biotechnology Index. The fund may
also invest in short term cash instruments of high quality. The
healthcare mutual fund has a three year annualized return of
24.87%.
The healthcare mutual fund has an expense ratio of 2.73%
compared to a category average of 1.52%.
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
(BIPSX): ETF Research Reports
(ETHSX): ETF Research Reports
(PHLAX): ETF Research Reports
(PHSTX): ETF Research Reports
(SWHFX): ETF Research Reports
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