Top 5 Zacks #1 Ranked Healthcare Mutual Funds by Zacks Investment Research
The healthcare sector is one of the most desirable avenues for parking investments when markets are headed south. The demand for such services usually remains unchanged even during an economic downturn and investments in the sector provide sufficient protection to the capital invested. Several pharmaceutical companies also provide regular dividends, which can help mitigate losses from falling share prices. Healthcare mutual funds 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, investors can click here to see the complete list of funds.
Fidelity Select Biotechnology (MUTF:FBIOX) invests the majority of its assets in common stocks of such companies which are primarily involved in activities involving new scientific and technological developments in biotechnology. It focuses on both domestic and foreign securities. The healthcare mutual fund has a one year annualized return of 42.05%.
Rajiv Kaul is the fund manager and has managed this healthcare mutual fund since 2005.
Rydex Biotechnology (MUTF:RYOIX) seeks capital growth. The fund invests heavily in equity securities and derivatives issued by domestic biotechnology companies. It focuses on small and mid-cap biotechnology companies. It is non-diversified and seeks capital growth. The healthcare mutual fund has a one year annualized return of 41.92%. < p> As of November 2012, this healthcare mutual fund held 47 issues, with 9.61% of its total assets invested in Amgen Inc.
Delaware Healthcare A (MUTF:DLHAX) invests the majority of its assets in the healthcare sector. It purchases equity of both domestic and foreign companies regardless of their size. It may also invest in emerging market stocks. The healthcare mutual fund has a one year annualized return of 16.04%.
The healthcare mutual fund has a minimum initial investment of $ 1,000 and an expense ratio of 1.55% compared to a category average of 1.53%.
VALIC Company I Health Sciences (MUTF:VCHSX) seeks long term capital growth. The fund invests the majority of its assets in common stocks of healthcare products, medicine or life sciences related companies. It focuses mainly on investing in large and mid-cap companies. Not more than 35% of its assets may be invested foreign securities. The healthcare mutual fund has a one year annualized return of 32.29%.
Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.
T. Rowe Price Health Sciences (MUTF:PRHSX) invests the majority of its assets in common stocks of companies whose primary operations are related to health sciences. The fund focuses on investing in large and mid-cap firms. It may also invest in foreign securities. The healthcare mutual fund has a one year annualized return of 32.37%.
The healthcare mutual fund has a minimum initial investment of $ 2,500 and an expense ratio of 0.82% compared to a category average of 1.53%.
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What Is A Mutual Fund?
An investment instrument that consists of a pool of funds from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar investment assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
One of the main benefits of mutual funds is that they provide small investors access to professionally managed, diversified investment portfolios of equities, bonds and other securities, which would be quite difficult if potentially impossible to create with a small amount of capital. Each investors participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NYSE:NAV) per share, which is sometimes expressed as NAVPS.