The healthcare sector is one of the most desirable avenues for
parking investments when markets are headed south. The demand for
such services usually remains unchanged even during an economic
downturn and investments in the sector provide sufficient
protection to the capital invested. Several pharmaceutical
companies also provide regular dividends, which can help mitigate
losses from falling share prices. Healthcare mutual funds provide
the perfect avenue for investors looking to invest in this
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.
Prudential Jennison Health Sciences A
(PHLAX) seeks capital growth on a long-term basis. The majority
of its assets are used to purchase equity securities of domestic
or foreign companies related to the health sciences sector.
Investment decisions are made after conducting both fundamental
and quantitative analysis. The healthcare mutual fund has a one
year annualized return of 34.87%. < p> The healthcare
mutual fund has a minimum initial investment of $2,500 and an
expense ratio of 1.23% compared to a category average of
Invesco Global Health Care A
(GGHCX) invests most of its assets in small and mid-cap companies
which issue convertible and equity securities. The primary
operations of these companies are related to the health-care
industry. The healthcare mutual fund has a one year annualized
return of 30.46%. < p> Derek Taner is the fund manager and
has managed this healthcare mutual fund since 2005.
Fidelity Select Biotechnology
(FBIOX) seeks capital growth. The fund invests a large share of
its assets in domestic and international firms whose principal
operations are related to technological research for the biotech
sector. The fund focusses on purchasing common stock. The
healthcare mutual fund has a one year annualized return of
As of July 2013, this healthcare mutual fund held 158 issues,
with 14.48% of its total assets invested in Gilead Sciences
Putnam Global Health Care A
(PHSTX) invests the majority of its assets in common stocks
issued by domestic and foreign large and midcap companies. These
companies are primarily those which operate in the healthcare
sector. The mutual fund is non-diversified and has a one year
annualized return of 30.48%.
The healthcare mutual fund has an expense ratio of 1.28%
compared to a category average of 1.41%.
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 45.83% over the last one year period.
Evan S. McCulloch is the fund manager and has managed this
healthcare mutual fund since 1997.
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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