One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services does not change with market conditions. Many pharmaceutical companies also pay out regular dividends.
Companies that consistently offer dividends are financially stable and generate a steady cash flow, irrespective of market conditions. Mutual funds are the perfect choice 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, namely ProFunds Biotechnology UltraSector Fund BIPSX, Fidelity Select Health Care Portfolio FSPHX and T. Rowe Price Health Sciences Fund PRHSX. 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.
ProFunds Biotechnology UltraSector Fund seeks daily investment results, before fees and expenses, with respect to one and one-half times the daily performance of the Dow Jones U.S. BiotechnologySM Index. BIPSX invests in certain companies in the biotechnology sector of the U.S. equity market thatmeet the fund’s investment objective.
ProFunds Biotechnology UltraSector Fund has three-year annualized returns of 11.5%. As of the end of October 2022, BIPSX held 50 issues, with 15.53% of its assets invested in Abbvie Incorporated.
Fidelity Select Health Care Portfolio invests most of its net assets in common stocks of foreign and domestic companies that are engaged in the design, manufacture or sale of products or services used for or in connection with health care or medicine. FSHCX invests in stocks based on fundamental analysis factors like the issuer’s financial condition, industry position, as well as market and economic condition.
Fidelity Select Health Care Portfolio has three-year annualized returns of 7.9%. FSPHX has an expense ratio of 0.68% compared with the category average of 1.03%.
T. Rowe Price Health Sciences Fund invests most of its assets along with borrowings, if any, in common stocks engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences. PRHSX advisors prefer to invest in companies with large and medium market capitalization.
T. Rowe Price Health Sciences Fund has three-year annualized returns of 10.2%. Ziad Bakri has been the fund manager of PRHSX since April 2016.
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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