During difficult market conditions, investors often depend on the healthcare sector to safeguard their investments. Since the demand for healthcare and related services does not vary with market conditions, they are a safe haven during tough times. Many pharmaceutical companies also generate regular dividends, which aid in combating losses from falling share prices. Mutual funds are the perfect choice for investors looking to enter this sector since they possess the analytical insight 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.
ProFunds Pharmaceuticals UltraSector (PHPSX) invests in equity securities and derivatives which together should provide daily returns which are 150% of the daily return of the Dow Jones U.S. Pharmaceuticals Index. The balance of the fund’s assets are utilised to purchase money market securities. The healthcare mutual fund is non-diversified and returned 21.8% over the last one year period.
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 1.57%.
Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund invests at least 80% of its assets in companies seeking to benefit from advances in the biotechnological sector. It focuses on acquiring common stocks and may also purchases securities issued by foreign companies. The healthcare mutual fund has a five year annualized return of 4.44%.
As of October 2011, this healthcare mutual fund held 118 issues, with 16.42% of its total assets invested in Amgen Inc.
Fidelity Select Medical Delivery (FSHCX) invests in firms engaged in the delivery of health care services. Such companies include those which manage hospitals, nursing homes health maintenance organizations and other firms focusing on delivery of healthcare services. The healthcare mutual fund returned 19.27% over the last one year period.
Andrew Hatem is the fund manager and has managed this healthcare mutual fund since 2009.
Prudential Jennison Health Sciences A (PHLAX) seeks capital appreciation over the long term. The fund invests heavily in firms from the health sciences domain. Equity and related securities of pharma companies, biotech firms, service providers and medical device manufacturers constitute its major investments. The healthcare mutual fund has a three year annualized return of 21.07%.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.27% compared to a category average of 1.57%.
T. Rowe Price Health Sciences (PRHSX) invests heavily in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund returned 18.32% over the last one year period.
Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.
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
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