The healthcare sector has become an especially viable option for parking investments when markets are headed south. Since the demand for such services usually remains unchanged by the state of the economy, they provide good protection for capital invested. Many several pharmaceutical companies also provide regular dividends, which can cushion losses from falling share prices. Healthcare mutual provide the perfect avenue for investors looking to invest 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.
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 4.29% in the last one year period.
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 1.77%.
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 mutual fund has a ten year annualized return of 3.12%.
As of June 2010, this health mutual fund held 61 issues, with 4.57% of its total assets invested in Gilead Sciences, Inc.
BlackRock Health Sciences Opportunities A (SHSAX) invests at least 80% of its assets in health science companies and related firms. The fund purchases common and preferred stock, convertible securities and also invests in derivatives. The health mutual fund has a five year annualized return of 5.38%.
The Fund Manager is Thomas Callan and has managed this health mutual fund since 2005.
Wells Fargo Advantage Health Care A (EHABX) primarily invests in healthcare companies of all sizes. This includes companies engaged in the development or production of products or services for the sector or those that derive a significant portion of their revenue from this segment. The health mutual fund has a ten year annualized return of 3.16%.
The health mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.81% compared to a category average of 1.97%.
Fidelity Select Medical Equipment & Systems (FSMEX) seeks capital growth by investing heavily in the healthcare sector. The fund primarily invests in securities of companies which produce, distribute or develop medical equipment, devices and related technologies. It also purchases foreign securities and may invest without limit in a single issuer. The health mutual fund has a five year annualized return of 2.28%.
Edward Lee Yoon is the fund manager and has managed this health mutual fund since 2007.
To view the Zacks Rank and past performance of all health 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/mutualfund/
