One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services remains relatively stable, regardless of market conditions. Among the sector players, many pharmaceutical companies also pay out regular dividends.
Companies that consistently offer dividends are financially stable and generate a steady cash flow, irrespective of market conditions. Mutual funds are the perfect choice for investors seeking to enter this sector, as they have the advantages of broad diversification and analytical insight.
Below, we share with you three healthcare mutual funds, namely Fidelity Advisor Biotechnology Fund FBTIX, PGIM Jennison Health Sciences Fund PHLAX and BlackRock Health Sciences Opportunities Portfolio Fund SHSAX. 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 Biotechnology Fund invests most of its net assets in common stocks of foreign and domestic companies that are principally engaged in the research, development, manufacture and distribution of various biotechnological products, services, and processes, and companies that benefit significantly from scientific and technological advances in biotechnology. FBTIX advisors choose to invest in stocks based on fundamental analysis factors such as the issuer's financial condition, industry position, as well as market and economic conditions.
Fidelity Advisor Biotechnology Fund has five-year annualized returns of 25%. As of the end of April 2026, FBTIX held 89 issues, with 14.8% of its assets invested in ABBVIE.
PGIM Jennison Health Sciences Fund seeks capital appreciation over time by investing most of its net assets in equity and equity-related securities of companies within the health sciences sector, such as pharmaceutical companies, biotechnology companies, medical device manufacturers, healthcare service providers and health maintenance organizations. PHLAX generally chooses to invest in companies that derive at least 50% of their assets, revenues or profits from operations in the healthcare sector.
PGIM Jennison Health Sciences Fund has three-year annualized returns of 14.1%. PHLAX has an expense ratio of 1.15%.
BlackRock Health Sciences Opportunities Portfolio Fund invests most of its net assets in equity securities, primarily common stock, of domestic and foreign companies in health sciences and related industries. SHSAX advisors generally invest in companies that concentrate in healthcare equipment and supplies, healthcare providers and services, biotechnology, and pharmaceuticals.
BlackRock Health Sciences Opportunities Portfolio Fund has three-year annualized returns of 8.8%. Erin Xie has been the fund manager of SHSAX since July 2003.
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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This article originally published on Zacks Investment Research (zacks.com).