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
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.
ProFunds Biotechnology UltraSector
(BIPSX) invests in a combination of securities and derivatives
which can provide 150% of the returns provided by the Dow Jones
U.S. Biotechnology Index. The healthcare mutual fund is
non-diversified and returned 98.80% over the last one year
' The healthcare mutual fund has a minimum initial investment
of $15,000 and an expense ratio of 2.73% compared to a category
average of 2.09%.
Eaton Vance Worldwide Health Sciences A
(ETHSX) seeks capital appreciation over the long term. The fund
invests the majority of its assets in companies from the health
sciences domain. A minimum of 25% of its assets must be invested
in medical research and the healthcare sector. The healthcare
mutual returned 26.42% over the last one year period.
Samuel D. Isaly is the fund manager and has managed this
healthcare mutual fund since 1985.
(RYOIX) invests the majority of its assets in domestic
biotechnology companies. Investments are also parked in
derivatives, primarily futures and options. The fund focusses on
investing in small cap and mid cap companies. This healthcare
mutual fund returned 45.19% over the last one year period.
As of August 2013, this healthcare mutual fund held 57 issues,
with 7.81% of its total assets invested in Gilead Sciences
Franklin Biotechnology Discovery A
(FBDIX) seeks capital growth. The majority of its assets is
invested in equity of biotechnology and research companies. A
maximum of 20% can also be invested in equity or debt securities
of domestic or foreign companies. The non-diversified healthcare
mutual returned 51.01% over the last one year period.. < p>
The healthcare mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.20% compared to a category
average of 1.41%.
Fidelity Select Medical Delivery
(FSHCX) invests the majority of its assets in firms whose
principal operations are related to managing or owning hospitals,
nursing homes and other firms focusing on healthcare service
delivery. The fund focusses on purchasing common stock. The
healthcare mutual fund is non-diversified and returned 30.37%
over the last one year period..
Steven Bullock is the fund manager and has managed this
healthcare mutual fund since 2012.
To view the Zacks Rank and past performance of all health
mutual funds, investors can click here to see the complete list
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
View All Zacks #1 Ranked Mutual Funds
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