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. Among the sector players, 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 broad diversification and analytical insight.
Below, we share with you three top-ranked healthcare mutual funds, viz., Fidelity Advisor Biotechnology Fund FBTIX, Janus Henderson Global Life Sciences JNGLX and Vanguard Health Care Fund VGHCX. Each has 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 Goldman Sachs mutual funds.
Fidelity Advisor Biotechnology Fund seeks capital appreciation. FBTIX invests at least 80% of assets in securities of companies principally engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes, and companies that benefit significantly from scientific and technological advances in biotechnology.
Fidelity Advisor Biotechnology Fund has three-year annualized returns of 6.6%. As of the end of July 2024, FBTIX held 85 issues, with 18.2% of its assets invested in AbbVie Inc.
Janus Henderson Global Life Sciences fund invests most of its assets, along with borrowings, if any, in securities of companies that, according to its portfolio managers, have a life science orientation. JNGLX has a fundamental policy to invest at least a small portion of its assets in companies that belong to the "life sciences" sector.
Janus Henderson Global Life Sciences has three-year annualized returns of 5.3%. JNGLX has an expense ratio of 0.80% compared to the category average of 0.98%.
Vanguard Health Care Fund seeks long-term growth of capital and dividend income. VGHCX invests in common stocks of companies in a variety of segments of the health-care industry that include pharmaceutical firms, designers and manufacturers of medical equipment and supplies, operators of hospitals and other healthcare facilities, and biotechnological researchers.
Vanguard Health Care Fund has three-year annualized returns of 4.1%. Jean M Hynes has been one of the fund managers of VGHCX since 2008.
To view the Zacks Rank and the past performance of all Dimensional mutual funds, investors can click here to see the complete list of Dimensional mutual funds.
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