Buy These 3 Healthcare Mutual Funds for a Steady Portfolio

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Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying much with 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 stable cash flows, irrespective of market conditions. Mutual funds are the perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.

Below we share with you three top-ranked 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 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.

Fidelity Advisor Health Care Fund Class M aims for capital growth. FACTX invests the majority of its assets in common stocks of companies that are 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 both U.S. as well as non-U.S. issuers.

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

Fidelity Select Medical Technology and Devices Portfolio fund aims for capital growth. It invests the majority of its assets in companies engaged in activities such as research, manufacturing, supply and sale of medical equipment and related technologies. FSMEX invests in common stocks and in U.S. and non-U.S. issuers.

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

Fidelity Select Health Care Portfolio is a non-diversified fund that aims for capital appreciation. FSPHX invests the majority of its assets in common stocks of companies engaged in the designing, manufacturing, or sale of products or services related to healthcare or medicine.

Fidelity Select Health Care Portfolio has three-year annualized returns of 22.2%. As of 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 Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.

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