Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to market conditions and thus offer sufficient protection to the capital invested. Many pharmaceutical companies also offer regular dividends. Companies that consistently pay out dividends are financially stable and generate steady cash flows, irrespective of market conditions. Mutual funds are perfect for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds, viz.,Select Health Care Svcs Port (FSHCX – Free Report) , DWS Health and Wellness Fund (SCHLX – Free Report) and Vanguard Health Care Fund (VGHCX – Free Report) . 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.
Select Health Care Svcs Port seeks capital appreciation. FSHCX invests in common stocks of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services.
Select Health Care Svcs Port has three-year annualized returns of 7.8%. As of the end of August 2023, FSHCX held 26 issues, with 24.5% of its assets invested in UnitedHealth Group.
DWS Health and Wellness Fund seeks long-term growth of capital by investing in common stocks of companies in the health care sector. SCHLX also invests in securities of U.S. companies, foreign companies, and US Treasury and agency debt securities.
DWS Health and Wellness Fund has three-year annualized returns of 3.9%. SCHLX has an expense ratio of 0.98% compared with the category average of 1.03%.
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 healthcare industry, which include pharmaceutical firms, designers and manufacturers of medical equipment and supplies, operators of hospitals and other healthcare facilities, and biotechnological researchers.
Vanguard Health Care Fund has a three-year annualized return of 5.1%. Jean M Hynes has been the fund manager of VGHCX since May 2008.
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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