Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.

 

Below, we share with you three healthcare mutual funds, viz., Health Care Services Portfolio (FSHCX Quick QuoteFSHCX - Free Report) , Janus Henderson Global Life Sciences Fund (JNGLX Quick QuoteJNGLX - Free Report) , and Fidelity Select Health Care Portfolio (FSPHX Quick QuoteFSPHX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

 

Health Care Services Portfolio seeks to achieve capital appreciation. FSHCX invests its assets in common stocks of companies primarily involved in owning or managing hospitals, nursing homes, health maintenance organizations, and other firms specializing in healthcare services. It provides dividends and capital gains bi-annually, in April and December.

 

Health Care Services Portfolio has three-year annualized returns of 15.4%. FSHCX has an expense ratio of 0.71% compared with the category average of 1.03%.

 

Janus Henderson Global Life Sciences Fund seeks long-term growth of capital and invests its net assets in securities issued by firms that the portfolio managers consider to have an emphasis on life sciences.

 

Janus Henderson Global Life Sciences Fund has a three-year annualized return of 14.3%. As of December 2022, JNGLX held 99 issues, with 6.6% of its assets invested in UnitedHealth Group.

 

Fidelity Select Health Care Portfolio seeks to obtain capital growth and invests in common stocks of businesses that specialize in developing, producing, or marketing healthcare or pharmaceutical-related goods or services. FSPHX declares capital gains and dividends twice a year, in April and December.

 

Fidelity Select Health Care Portfolio has a three-year annualized return of 11%. Edward Yoon has been the fund manager of FSPHX since October 2008.

 

To view the Zacks Rank and the past performance of all Healthcare mutual funds, investors can click here to see the complete list of healthcare mutual funds.

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