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 vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested. Many pharma companies also pay out regular dividends. Companies that consistently offer dividends are financially stable and generate steady cash flows irrespective of market conditions. Mutual funds are 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. 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 healthcare funds, their Zacks Rank and past performance.
Invesco Health Care Fund Investor Class (GTHIX – Free Report) fund seeks long-term capital appreciation. The fund invests most of its net assets in securities of companies engaged in healthcare-related industries. The fund mostly invests in equity securities, depositary receipts and securities convertible into equity securities. GTHIX has three-year annualized returns of 6.4%.
GTHIX has an expense ratio of 1.10% compared with the category average of 1.26%.
T. Rowe Price Health Sciences Fund (PRHSX – Free Report) is a non-diversified fund that invests more than 80% of its assets in common stocks of companies engaged in various activities in the field of healthcare, medicine or life sciences. The fund mostly invests in mid- and large-capitalization companies. PRHSX has three-year annualized returns of 10.2%.
Ziad Bakri is the fund manager of PRHSX since 2016.
Janus Henderson Global Life Sciences Fund T (JAGLX – Free Report) invests in securities of companies that have a life science orientation. JAGLX invests a minimum of one-fourth of its assets in securities issued by companies that are categorized in the life sciences sector. JAGLX has three-year annualized returns of 8.4%.
As of June 2019, JAGLX held 95 issues with 4.29% of its assets invested in Merck & Co Inc.
To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.
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