Top 5 Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds
January 15 2013 - 11:59AM
Zacks
When markets are passing through choppy waters, investors often
rely on the healthcare sector to safeguard their investments. This
is because the demand for healthcare services does not vary with
market conditions, making them a safe haven during difficult times.
Many pharma companies also generate regular dividends, which go a
long way in softening the blow dealt by plummeting share prices.
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 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, investors can
click here to see the complete list of funds.
Fidelity Select Health Care (FSPHX) invests the majority
of its assets in companies whose principal operations include
production, design and sales of health care related products or
services. It focuses on acquiring common stocks and purchases both
domestic and foreign securities. The healthcare mutual fund has a
three year annualized return of 16.89%.
The healthcare mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.80% compared to a category average
of 1.52%.
Manning & Napier Life Sciences (EXLSX) seeks capital
appreciation over the long term. The fund invests heavily in
securities of companies from the life sciences sector. Domestic and
foreign equity, ADRs and U.S. dollar denominated foreign securities
make up the majority of its assets. The healthcare mutual fund has
a three year annualized return of 11.67%.
As of November 2012, this health mutual fund held 36 issues,
with 6.27% of its total assets invested in Strides Arcolabs
Ltd.
Putnam Global Health Care A (PHSTX) invests predominantly
in common stocks of large and mid size companies from the health
care sector across the world. The fund may purchase both growth and
value stocks. The healthcare mutual fund has a three year
annualized return of 7.72%.
Kelsey Chen is the fund manager and has managed this healthcare
mutual fund since 2005.
Schwab Health Care (SWHFX) seeks long term capital
appreciation. The fund invests a large proportion of its assets in
the healthcare sector. It mainly invests in equity securities but
may also invest in derivatives. The fund focuses on investing in
domestic firms, but may invest up to 25% of its assets in other
countries. The healthcare mutual fund has a three year annualized
return of 14.70%.
The healthcare mutual fund has a minimum initial investment of
$100 and an expense ratio of 0.82% compared to a category average
of 1.52%.
Biotechnology UltraSector ProFund Service (BIPSX) invests
in equity securities and derivatives which together should provide
daily returns which are 150% of the daily return of the Dow Jones
U.S. Biotechnology Index. The healthcare mutual fund has a three
year annualized return of 24.64%.
Hratch Najarian is the fund manager and has managed this
healthcare mutual fund since 2011.
To view the Zacks Rank and past performance of all health mutual
funds, investors can click here to see the complete list of
funds.
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.
View All Zacks #1 Ranked Mutual Funds
(BIPSX): ETF Research Reports
(EXLSX): ETF Research Reports
(FSPHX): ETF Research Reports
(PHSTX): ETF Research Reports
(SWHFX): ETF Research Reports
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