The passage of the new healthcare legislation has meant that companies from this sector have been impacted in different ways. While many companies stand to benefit from the acquisition of new customers, other firms will have to payout substantially higher fees. Overall, the healthcare sector has performed well despite the economic downturn and has bright prospects for the future. With the advantages of professional management and disciplined research, heath mutual funds offer a superior option to investing in this sector.
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, then click here.
Rydex Health Care (RYHIX) seeks capital growth. The majority of its assets are invested in domestic healthcare companies. The fund focuses on acquiring equity securities and derivatives of pharma companies, firms in the research and development domain and which operate healthcare facilities. The health mutual fund returned 7.63% in the last one year period.
The health mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.37% compared to a category average of 1.96%.
Eaton Vance Worldwide Health Sciences A (ETHSX) invests at least 80% of its assets in health science companies and related firms. Common stock constitutes the fund’s major investments, but it may also purchase fixed-income securities. The health mutual fund has a five year annualized return of 3.32%.
The Fund Manager is Samuel D. C. Isaly and he has managed this health mutual fund since 1985.
Invesco Global Health Care A (GGHCX) seeks capital appreciation over the long term. The fund invests primarily in companies from the health care sector. It purchases securities from issuers located in at least three countries, including the US. Up to 50% of its assets may be invested in any one country, apart from the US. The health fund returned 4.61% over the last one year period.
As of June 2010, this health fund held 61 issues, with 4.57% of its total assets invested in Gilead Sciences, Inc.
Prudential Jennison Health Sciences A (PHLAX) 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 health mutual fund returned 9.82% in the last one year period and has a ten year annualized return of 8.48%.
The health mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.30% compared to a category average of 1.96%.
Fidelity Select Health Care (FSPHX) seeks capital growth. The fund invests the majority of its assets in companies whose principal operations include production, design and sales of health care related products or services. It may also purchase securities issued by foreign companies. The health mutual fund returned 10.96% over the last one year period.
Edward Lee Yoon is the fund manager and has managed this health mutual fund since 2008.
To view the Zacks Rank and past performance of all health 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/mutualfund/
