The new healthcare legislation has significantly affected the fortunes of this crucial economic sector. Most companies face the prospect of gaining numerous new customers as well as having to pay up higher fees. But many firms continue to perform despite these developments and the recent economic slowdown. Investing in healthcare securities requires deep insight into the nuances of drug discovery and advances in biotechnology. With the advantages of professional management and focused research, mutual funds are an ideal option to investing in this sector.
Below we will share with you the 5 best performing healthcare mutual funds year to date.
Prudential Jennison Health Sciences A (PHLAX) seeks long-term capital growth. The majority of its assets are used to purchase equity securities of health-sciences companies. Pharmaceutical companies, biotechnology firms, medical device manufacturers and healthcare service providers constitute the fund’s major investments. The healthcare mutual fund returned 15.86% over the last one year period.
The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.30% compared to a category average of 1.77%.
Fidelity Select Pharmaceuticals (FPHAX) invests heavily in securities whose primary operations involve manufacture, sale, development or distribution of pharmaceuticals and drugs. The fund invests in the pharma sector as well as in companies specialising in testing and regulatory approval facilitation. The healthcare mutual fund has a five year annualized return of 6.88%.
The fund manager is Andrew Oh and he has managed this healthcare mutual fund since 2006.
Fidelity Select Health Care (FSPHX) seeks capital growth. The fund invests the majority of its assets in companies whose principal operations include production, design and sales of health care related products or services. The healthcare mutual fund returned 13.52% over the last one year period.
As of November 2010, this healthcare mutual fund held 94 issues, with 7.41% of its total assets invested in Medco Health Solutions, Inc.
Fidelity Select Medical Delivery (FSHCX) invests in firms engaged in the delivery of health care services, such as those which manage hospitals, nursing homes or similar organizations. 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 8.89%.
T. Rowe Price Health Sciences (PRHSX) seeks 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 13.04% 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 1.77%.
To view the Zacks Rank and past performance of all healthcare mutual funds, then click here.