Top 5 Healthcare Mutual Funds - Best of Funds

When markets are going through troubled times, investors often depend on the healthcare sector to protect their valuable investments. Healthcare and related services continue to remain in demand during difficult market conditions and are a safe haven in tough times. Mutual funds are the perfect choice for investors looking to enter this sector since they posses the analytical insight needed to keep abreast of the latest advancements in this sector.

Below we will share with you 5 top rated health mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all health funds, then click here.

Putnam Global Health Care A (PHSTX) seeks long-term capital growth. The fund invests primarily in companies from the health care sector across the globe. It focuses on acquiring common stocks of large and mid-cap companies. The health mutual fund returned 5.33% over the last one year period.

As of September 2010, this health mutual fund held 65 issues, with 7.53% of its total assets invested in Pfizer Inc.

Invesco Global Health Care A (GGHCX) invests primarily in companies from the health care sector. It purchases securities from issuers located in at least three countries, including the US. Up to 50% of its assets may be invested in any one country, apart from the US. The health mutual fund has a ten year annualized return of 3.39%.

The health mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.31% compared to a category average of 1.77%.

Rydex Health Care (RYHIX) seeks capital growth. The majority of its assets are invested in domestic healthcare companies. The fund focuses on acquiring equity securities and derivatives of pharma companies, firms in the research and development domain and which operate healthcare facilities. The health mutual fund returned 10.25% in the last one year period.

Michael P. Byrum is the fund manager and has managed this health mutual fund since 1998.

Manning & Napier Life Sciences(EXLSX) invests heavily in securities of companies from the life sciences sector. Domestic and foreign equity, ADRs and U.S. dollar denominated foreign securities make up the majority of its assets. The health mutual fund returned 11.59% over the last one year and has a five year annualized return of 4.11%.

The health mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.11% compared to a category average of 1.77%.

Fidelity Select Medical Equipment & Systems (FSMEX) seeks capital growth by investing heavily in the healthcare sector. The fund 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 health mutual fund has a ten year annualized return of 7.54%.

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

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

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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/