Buy These 3 Healthcare Mutual Funds for a Stable Portfolio

Investors often rely on the healthcare sector to protect their investments. In fact, demand for healthcare services varies little with market conditions and thus offers sufficient protection for invested capital.

Many pharmaceutical companies also offer regular dividends. Companies that regularly pay dividends are financially stable and generate stable cash flow regardless of market conditions. Mutual funds are the perfect choices for investors looking to enter this industry as they possess the benefits of broad diversification and analytical insight.

Below we share with you three leading healthcare mutual funds – Fidelity Advisor Health Care Fund Class M FACTX, Fidelity Select Medical Technology and Devices Portfolio FSMEX and Fidelity Select Health Care Portfolio FSPHX. Each earned a Zacks Mutual Fund Ranking #1 (Strong Buy) and are expected to outperform their peers going forward. Investors can click here to view the full list of funds.

Fidelity Advisor Class M Healthcare Fund seeks capital growth. FACTX invests the majority of its assets in common stocks of companies engaged in the design, manufacture or sale of products or services used for or in connection with health care or medicine. Fidelity Advisor Health Care Fund Class M invests in US and non-US issuers.

Fidelity Advisor Health Care Fund Class M has three-year annualized returns of 19.6%. Edward Yoon has been FACTX’s fund manager since 2008.

Fidelity Select family of medical devices and technologies fund seeks capital growth. It invests the majority of its assets in companies engaged in activities such as research, manufacture, supply and sale of medical equipment and related technologies. FSMEX invests in common stocks and in US and non-US issuers.

The Fidelity Select Medical Technology and Devices portfolio has three-year annualized returns of 28%. FSMEX has an expense ratio of 0.70% compared to the category average of 1.03%.

Fidelity Select Healthcare Portfolio is a non-diversified fund that seeks capital appreciation. FSPHX invests the majority of its assets in common stocks of companies engaged in the design, manufacture or sale of health care or medical related products or services.

The Fidelity Select Healthcare portfolio posted three-year annualized returns of 22.2%. At the end of November 2021, FSPHX held 72 issues with 13.9% of its assets invested in Thermo Fisher Scientific Inc.

To view the Zacks Ranking and past performance of all healthcare mutual funds, investors can click here to see the full list of funds.

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