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 pharmacy 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 - MF report)
invests largely in companies that own or are involved in operating hospital and
nursing homes, and are related to health care services sector. The fund focuses
on acquiring common stocks of both U.S. and non U.S. companies. This healthcare
mutual fund is non-diversified and returned 26.3% over the last one year
period.
The fund has an expense ratio of
0.82% as compared to category average of 1.39%.
Vanguard Health Care Index
Admiral (VHCIX - MF report)
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 index includes domestic health
care companies. This healthcare mutual fund is non-diversified and returned
28.3% over the last one year period.
As of July 2014, this fund held
312 issues with 10.14% of its assets invested in Johnson & Johnson.
Fidelity Select Medical Equipment
& Systems (FSMEX - MF report)
invests a lion’s share of its assets in companies that are primarily involved
in medical equipment and devices and related technologies sector. The fund
invests in both US and non-US companies. This healthcare mutual fund is
non-diversified and returned 27.8% over the last one year period.
Edward Yoon is the fund manager
and has managed this healthcare mutual fund since 2007.
Fidelity Select Health Care (FSPHX - MF report)
seeks capital growth over the long run. It invests a majority of its assets in
companies whose principal operations include production, design and marketing
of health care related products or services. The fund focuses on acquiring
common stocks and purchases both domestic and foreign securities depending on
factors such as financial strength and economic conditions. This
non-diversified fund returned 41.3% over the last one year period.
The fund has an expense ratio of
0.76% as compared to category average of 1.39%.
Fidelity Select Pharmaceuticals (FPHAX - MF report)
invests heavily in firms all over the globe whose primary operations are
related to manufacturing, selling, developing or distributing pharmaceuticals
and drugs. The fund invests in the pharma sector taking into consideration the
industry position and the financial condition of the issuer. This healthcare
mutual fund is non-diversified and returned 33.9% over the last one year
period.
As of July 2014, this fund held
89 issues with 8.53% of its assets invested in Actavis PLC
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 in our Mutual Fund Center.
