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 healthcare mutual funds, namely Janus Henderson Global Life Sciences Fund JNGLX, Vanguard Health Care Fund VGHCX and Fidelity Select Biotechnology FBIOX. Each has earned 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 funds.
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 Fund has five-year annualized returns of 12.3%. As of the end of March 2024, JNGLX held 96 issues, with 7.1% of its assets invested in Eli Lilly.
Vanguard Health Care Fund invests the majority of its net assets in common stocks of foreign and domestic companies that are engaged in the development, production, or distribution of products and services related to pharmaceutical and medical supply companies as well as businesses that operate hospitals and other healthcare facilities. VGHCX advisors may also invest in companies that are engaged in medical, diagnostic, biochemical, and other research and development activities.
Vanguard Health Care Fund has five-year annualized returns of 11.4%. VGHCX has an expense ratio of 0.35%.
Fidelity Select Biotechnology fund invests most of its net assets in common stocks of foreign and domestic companies that are 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. FBIOX advisors choose to invest in stocks based on fundamental analysis factors like the issuer’s financial condition, industry position, as well as market and economic condition.
Fidelity Select Biotechnology fund has five-year annualized returns of 9.2%. Rajiv Kaul has been the fund manager of FBIOX since October 2005.
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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