Top 3 Healthcare Mutual Funds to Strengthen Your Portfolio

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 choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.

Below we share with you three top-ranked healthcare mutual funds — Putnam Global Health Care Fund Class Y PHSYX, Fidelity Select Health Care Services Portfolio FSHCX, and Virtus AllianzGI Health Sciences Fund Class A RAGHX. 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 healthcare mutual funds.

Putnam Global Health Care Fund Class Y is a non-diversified fund that aims for capital appreciation by investing most of its net assets in common stocks of companies in the health care industries worldwide. PHSYX advisors choose to invest in growth or value-oriented stocks or sometimes both  

Putnam Global Health Care Fund Class Y has three-year annualized returns of 16.8%. As of the end of February 2022, PHSYX held 49 issues with 9.03% of its assets invested in UnitedHealth Group Inc.

Fidelity Select Health Care Services Portfolio fund seeks to invest a sizeable amount of its net assets in common stocks of domestic and foreign issuers primarily engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. FSHCX’s investments are mostly based on a fundamental analysis of companies and their market position with respect to broader economic conditions.

Fidelity Select Health Care Services Portfolio has three-year annualized returns of 20.2%. FSHCX has an expense ratio of 0.73% compared with the category average of 1.03%.

Virtus AllianzGI Health Sciences Fund Class A fund seeks long-term capital appreciation by investing its net assets in health sciences-related companies that design, manufacture or sell products or services used in healthcare, medicine, or life sciences. RAGHX invests in common stocks and other equity securities.

Virtus AllianzGI Health Sciences Fund Class A has three-year annualized returns of 14.9%. Peter Pirsch has been the fund manager of RAGHX since 2018.

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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