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Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds

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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.

Fidelity Select Medical Delivery Portfolio (FSHCX) seeks capital growth over long run. It 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. Factors such as financial strength, economic conditions and industry position are considered for investment. The healthcare mutual fund is non-diversified and returned 24.68% over the last one year period.

The fund has an expense ratio of 0.82% as compared to category average of 1.40%.

VY BlackRock Health Sciences Opportunities A (IEHAX) invests a lion share of its assets in companies in health science sectors and which are related to this sector. It may also invest in other derivatives including IPOs and depositary receipts. It may invest a maximum of 15% of its assets in restricted securities. The healthcare mutual fund returned 25.09% over the last one year period.

Thomas Callan is the fund manager and has managed this healthcare mutual fund since 2011.

Janus Global Life Sciences A (JFNAX) seeks long term capital appreciation. It largely invests in companies that are believed to have relation with life science. It invests a minimum of 25% of its assets in firms having their presence in life sciences domain. The healthcare mutual fund returned 36.34% over the last one year period.

As of March 2014, this fund held 93 issues with 4.50% of its assets invested in Gilead Sciences Inc.

T. Rowe Price Health Sciences (PRHSX) invests the majority of its assets in common stocks of companies whose primary operations are related to health sciences. The fund focuses on investing in large and mid-cap firms. It may also invest in non U.S. securities. The healthcare mutual fund returned 32.21% over the last one year period.

The fund has an expense ratio of 0.79% as compared to category average of 1.40%.

Vanguard Health Care Index (VHCIX) seeks to provide returns identical to that of the MSCI US Investable Market Index (IMI)/Health Care 25/50 index. The fund invests in almost all or all of the stocks which are included in the index. The healthcare mutual fund is non-diversified and returned 24.54% over the last one year period.

Ryan E. Ludt is the fund manager and has managed this healthcare mutual fund since 2004.

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.

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View All Zacks #1 Ranked Mutual Funds

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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