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, viz., JanusHenderson Global Life Sciences Fund JNGLX, Vanguard Health Care Fund VGHCX and Fidelity Select Pharmaceuticals Port FPHAX. 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 SciencesFund has a three-year annualized return of 7.4%. As of March 2024, JNGLX held 96 issues, with 7.1% of its assets invested Eli Lilly and Co.
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 health-care facilities, and biotechnological researchers.
Vanguard Health Care Fund has three-year annualized returns of 6.8%. VGHCX has an expense ratio of 0.34% compared with the category average of 73%.
Fidelity Select Pharmaceuticals Port fund seeks capital appreciation. FPHAX invests most of its assets in companies engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all kinds.
Fidelity Select Pharmaceuticals Port has three-year annualized returns of 13.6%. Karim Suwwan de Felipe has been the fund manager of FPHAX since July 2017.
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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