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 choice for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds, viz., Fidelity Select Pharmaceuticals FPHAX, Janus Henderson Global Life Sciences Fund JNGLX and Vanguard Health Care Fund VGHCX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
Fidelity Select Pharmaceuticals seeks capital appreciation by investing in companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all kinds. FPHAX advisors also invest in common stocks.
Fidelity Select Pharmaceuticals has three-year annualized returns of 7.7%. Karim Suwwan de Felipe has been the fund manager of FPHAX since June 2017.
Janus Henderson Global Life Sciences Fund invests its net assets in securities issued by firms that the advisors believe have a life science emphasis. JNGLX has created a fundamental policy mandating a minimum investment of its total assets in securities issued by firms categorized under the “life sciences” sector.
Janus Henderson Global Life Sciences Fund has a three-year annualized return of 8.9%. JNGLX has an expense ratio of 0.80% compared with the category average of 1.03%.
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 healthcare industry, which 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 8.5%. As of January 2023, VGHCX held 105 issues, with 6.2% of its assets invested in UnitedHealth Group Inc.
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