The new legislation before Congress has ensured that the healthcare sector continues to dominate headlines. Though policy changes are a key indicator for those looking to invest in this sector, healthcare continues to do well despite the economic downturn. However, understanding the nuances of cutting edge medical research requires skilled insight and mutual funds, which offer the benefit of professional management, are an excellent route to investing in this sector.
Below we will share with you 5 top rated healthcare funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all healthcare funds, then click here.
Putnam Global Health Care A (PHSTX) invests the majority of its assets in health care companies worldwide. It focuses on large and mid-cap companies, but may also consider firms of smaller size. The healthcare fund returned 25.16% over the last one year period.
The Fund Manager is Kelsey Chen and she has managed this healthcare fund since 2005.
Fidelity Select Medical Delivery (FSHCX) seeks long-term capital growth by investing in firms engaged in the delivery of health care services, such as those which manage hospitals, nursing homes or similar organizations. It is non-diversified and may also purchase foreign securities. It is a no load fund.
The healthcare fund returned 49% in 2009 and has a ten year annualized return of 12.82%.
Delaware Healthcare A (DLHAX) invests at least 80% of its assets in both domestic and foreign health care companies across all market capitalizations. It is non diversified and may consider companies located in emerging markets. The healthcare fund returned 61.31% in 2009.
This healthcare fund has an expense ratio of 1.60% compared to a category average of 1.91%.
Schwab Health Care (SWHFX) seeks long term capital appreciation by investing primarily in domestic health care companies, but may also use up to 25% its assets to purchase stock in foreign firms. It may also consider futures contracts as an investment choice. This healthcare fund has a five year annualized return of 4.1%.
Larry M Mano is the fund manager and has managed this healthcare fund since 2000.
Rydex Biotechnology (RYOIX) invests a large share of its assets in equity securities and derivatives issued by domestic Biotechnology companies. It is non-diversified and seeks long-term capital growth. The healthcare fund returned 19.52% in 2009 has a three year annualized return of 4.15%.
As of December 2009, this healthcare fund held 29 issues, with 13.51% of its total assets invested in Amgen, Inc.
To view the Zacks Rank and past performance of all healthcare 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/
