When markets are facing a downturn, investors often depend on the healthcare sector to safeguard their investments. Since the demand for healthcare and related services does not fluctuate with changing market conditions, such investments are a safe haven during tough times. Many pharmaceutical companies also pay out regular dividends, which soften the blow investors receive from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they posses the advantages of analytical insight gleaned form in depth research which is needed to keep abreast of the latest advancements in this domain.
Below we will share with you the 5 best performing healthcare mutual funds year to date. To view the Zacks Rank and past performance of all healthcare funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Prudential Jennison Health Sciences A | #3 Hold | 9.6% |
| Fidelity Select Pharmaceuticals | #2 Buy | 9.1% |
| Franklin Biotechnology Discovery A | #3 Hold | 7.9% |
| T. Rowe Price Health Sciences A | #3 Hold | 5.8% |
| Rydex Series Trust Biotechnology | #1 Strong Buy | 5.4% |
Prudential Jennison Health Sciences A (PHLAX) seeks long-term capital growth. The majority of its assets are used to purchase equity securities of health-sciences companies. Pharmaceutical companies, biotechnology firms, medical device manufacturers and healthcare service providers constitute the fund’s major investments.The healthcare mutual fund has a ten year annualized return of 7.32%
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.30% compared to a category average of 1.77%.
Fidelity Select Pharmaceuticals (FPHAX) invests heavily in securities whose primary operations involve manufacture, sale, development or distribution of pharmaceuticals and drugs. The fund invests in the pharma sector as well as in companies specialising in testing and regulatory approval facilitation. The healthcare mutual fund has a five year annualized return of 6.56%.
The fund manager is Andrew Oh and he has managed this healthcare mutual fund since 2006.
Franklin Biotechnology Discovery A (FBDIX) seeks growth of capital by investing the majority of its assets in biotechnology firms and discovery research companies. It focuses on small-cap companies and may invest a small portion of its assets in private securities. The healthcare mutual fund returned 6.26% over the last one year period. The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.32% compared to a category average of 1.77%.
T. Rowe Price Health Sciences (PRHSX) invests heavily in common stocks of companies whose primary operations are related to healthcare products and services. The fund focuses on purchasing securities issued by large and mid-cap companies. The healthcare mutual fund has a ten year annualized return of 4.5%.
As of September 2010, this healthcare mutual fund held 164 issues, with 5.00% of its total assets invested in Alexion Pharmaceuticals, Inc.
Rydex Series Trust Biotechnology (RYOIX) seeks capital growth. The fund invests at least 80% of its assets in equity securities and derivatives of companies in the biotechnology sector which are traded in the U.S. It also purchases ADRs and government securities and may engage in futures and options transactions. It is a no-load fund.
This healthcare mutual fund has a three year annualized return of 2.72%.
To view the Zacks Rank and past performance of all healthcare mutual funds, then click here.
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
