3 Best Healthcare Mutual Funds You Must Have in Your Portfolio
Investors often rely on the healthcare sector to secure their investments. This is because the demand for health services is not highly dependent on market conditions and thus offers sufficient protection for the capital invested.
Many pharmaceutical companies also offer regular dividends. Companies that consistently pay dividends are financially stable and generate consistent cash flows regardless of market conditions. Mutual funds are the perfect choice for investors looking to get into this sector as they have the benefits of broad diversification and analytical knowledge.
Below we share with you three top-notch healthcare mutual funds. Everyone has received a Zacks Mutual Fund Rank 1 (Strong Buy) and is expected to outperform their peers in the future. Investors can click here for the full list of funds.
The Class C AHSCX Alger Health Sciences Fund seeks long term capital growth. The company invests most of its assets in stocks of companies of varying market capitalizations that are active in the health sciences field. The fund can also invest in foreign securities. AHSCX has an annualized three-year return of 13.6%.
Daniel C. Chung has been a fund manager at AHSCX since 2005.
PGIM Jennison Health Sciences Fund - Class A PHLAX is aimed for long-term capital appreciation. This nondiversified fund invests the majority of its assets in stocks and equity-related securities of health science companies such as pharmaceutical companies, biotechnology companies, medical device manufacturers, health care providers and health maintenance organizations. PHLAX has achieved a return of 12.8% over the past three years.
At the end of October 2020, PHLAX held 83 issues, with 5.49% of its assets invested in UnitedHealth Group Inc.
Fidelity Select Health Care Portfolio FSPHX is a nondiversified fund that aims for capital appreciation. The Fund invests the majority of its assets in common stocks of companies that design, manufacture or sell products or services related to healthcare or medicine. FSPHX has an annualized three-year return of 16.6%.
FSPHX has an expense ratio of 0.70% versus the category average of 1.21%.
To view the Zacks rankings and past performance of all healthcare mutual funds, investors can click here for the full list of funds.
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