Top 5 Best Performing Healthcare Mutual Funds (March 2011)

Healthcare funds are often the preferred option for investors who face the prospect of substantial losses during a market downturn. Since the demand for such services usually remains unchanged by the state of the economy, they provide good protection for capital invested. Many several pharmaceutical companies also provide regular dividends, which can cushion losses from falling share prices. Healthcare mutual provide the perfect avenue for investors looking to invest in this sector.

Below we will share with you the 5 best performing healthcare mutual funds year to date.

Mutual Fund Zacks Rank Total Return YTD
Fidelity Select Medical Delivery #1 Strong Buy 11.4%
Fidelity Select Health Care #3 Hold 7.5%
Fidelity Select Medical Equipment & Systems #1 Strong Buy 7.1%
T. Rowe Price Health Sciences #3 Hold 6.8%
Delaware Healthcare A #1 Strong Buy 6.2%

Fidelity Select Medical Delivery (FSHCX) invests in firms engaged in the delivery of health care services. Such companies include those which manage hospitals, nursing homes health maintenance organisations and other firms focussing on delivery of healthcare services. It is non-diversified and may also purchase foreign securities. It is a no load fund.

The healthcare mutual fund has a ten year annualized return of 10.62%.

Fidelity Select Health Care (FSPHX) seeks capital growth. The fund invests a significantly large share of its assets in companies whose principal operations include production, design, manufacture and sales of health care related products or services. It may also invest in companies who offer products and services related to healthcare. The fund may also consider purchasing foreign securities. The healthcare mutual fund returned 22.86% over the last one year period.

The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.87% compared to a category average of 1.79%.

Fidelity Select Medical Equipment & Systems (FSMEX) primarily invests in securities of companies which produce, distribute or develop medical equipment, devices and related technologies. It also purchases foreign securities and may invest without limit in a single issuer. The healthcare mutual fund has a five year annualized return of 8.27%.

Edward Lee Yoon is the fund manager and has managed this healthcare mutual fund since 2007.

T. Rowe Price Health Sciences (PRHSX) seeks capital appreciation over the long term. The fund invests heavily in common stocks of companies whose primary operations are related to healthcare products and services. The fund focuses on purchasing securities issued by large and mid-cap companies. The healthcare mutual fund returned 21.64% over the last one year period.

As of December 2010, this healthcare mutual fund held 165 issues, with 5.85% of its total assets invested in Alexion Pharmaceuticals, Inc.

Delaware Healthcare A (DLHAX) invests the majority of its assets in equity securities of health care companies. The fund invests in both domestic and foreign companies regardless of their size. It is non-diversified and may also purchase emerging market securities. The healthcare mutual fund has a three year annualized return of 22.82%.

The healthcare mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.52% compared to a category average of 1.79%.

To view the Zacks Rank and past performance of all healthcare mutual funds, then click here.

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