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3 Best-Ranked Healthcare Mutual Funds for Steady Return

Healthcare mutual funds provide excellent choices for investors looking to enter this safe-haven sector, which is likely to protect their investment during market volatility. The healthcare sector has proven to be one of the most desirable investments during difficult times as demand for healthcare does not vary with market conditions. Several pharmaceutical companies also have a history of paying regular dividends, which can help to offset gyrations in share prices.

Below we share with you three top-ranked healthcare mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of healthcare funds.

Delaware Healthcare C (DLHCX) seeks long-term capital growth. DLHCX invests a large portion of its assets in the equity securities of healthcare companies. These companies produce and distribute products that are required in the healthcare or medical industries. The Delaware Healthcare C fund is non-diversified and has a three-year annualized return of 13.6%.

Liu-Er Chen is the lead manager since 2007.

Fidelity Select Medical Delivery Portfolio (FSHCX) invests the majority of its assets in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. FSHCX focuses on acquiring common stocks of issuers all over the world. The Fidelity Select Medical Delivery Portfolio fund has a three-year annualized return of 16.6%.

As of March 2016, FSHCX held 40 issues with 22.2% of its assets invested in UnitedHealth Group Inc.

Schwab Health Care (SWHFX) seeks long-term capital appreciation. SWHFX invests a large portion of its assets in equity securities issued by companies in the health care sector. Biotechnology companies, health care facilities, medical product manufacturers and suppliers, medical providers and medical services firms are all part of the healthcare sector. The Schwab Health Care fund has a three-year annualized return of 13.7%.

SWHFX has an expense ratio of 0.79% compared with the category average of 1.35%.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.


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