Investors seeking long-term aggressive holdings need not look beyond mutual funds betting on the technology sector. Even though such funds experience relatively higher levels of volatility, they tend to outperform other categories when markets as a whole are seeing an uptrend. Recent results from tech firms have also shown that the sector is gearing up to enter a new era of success and prosperity. Further, fund prices are based on stronger fundamentals compared to their initial boom period, substantially reducing the risk involved.

Below we will share with you the 5 best performing healthcare mutual funds year to date. To view the Zacks Rank and past performance of all healthcare funds, then click here.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Biotech Ultra Sector

#1 Strong Buy

64.18%

Fidelity Select Biotechnology

#2 Buy

36.59%

Rydex Biotechnology

#4 Sell

36.54%

T. Rowe Price Health Sciences

#4 Sell

31.93%

 

VALIC Company I Health Sciences

#4 Sell

31.71%

 
 
 

ProFunds Biotechnology UltraSector (BIPSX) invests in equity securities and derivatives that in the opinion of the fund advisors possess daily return characteristics identical to one and a half times the daily return of the Dow Jones U.S. Biotechnology Index. The healthcare mutual fund is non-diversified and has a three year annualized return of 22.93%.

The healthcare mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.73% compared to a category average of 1.52%.

Fidelity Select Biotechnology (FBIOX) seeks capital growth. The fund invests the majority of its assets in biotechnology companies as well as those seeking to benefit from advances in the biotechnological sector. It focuses on acquiring common stocks and may also purchases securities issued by foreign companies. The healthcare mutual fund has a three year annualized return of 21.61%.

Rajiv Kaul is the fund manager and has managed this healthcare mutual fund since 2005.

Rydex Biotechnology (RYOIX) utilises a large share of its assets to purchase equity securities and derivatives issued by domestic biotechnology companies. It focuses on acquiring securities of small and mid-cap companies. The healthcare mutual fund has a three year annualized return of 18.92%.

As of December 2012, this healthcare mutual fund held 46 issues, with 8.75% of its total assets invested in Amgen Inc.

T. Rowe Price Health Sciences (PRHSX) seeks capital growth over the long term. The fund invests heavily in common stocks of companies whose primary operations are related to healthcare products medicine or life sciences. The fund focuses on investing in large and mid-cap firms but may also purchase stock of smaller companies. The healthcare mutual fund has a three year annualized return of 19.43%.

The healthcare mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.82% compared to a category average of 1.52%.

VALIC Company I Health Sciences (VCHSX) invests the majority of its assets in common stocks of healthcare products, medicine or life sciences related companies. It focuses mainly on investing in large and mid-cap companies. Not more than 35% of its assets may be invested foreign securities. The healthcare mutual fund has a three year annualized return of 18.99%.

Kris H. Jenner is the fund manager and has managed this healthcare mutual fund since 2000.

To view the Zacks Rank and past performance of all healthcare 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.


 
(BIPSX): ETF Research Reports
 
(FBIOX): ETF Research Reports
 
(PRHSX): ETF Research Reports
 
(RYOIX): ETF Research Reports
 
(VCHSX): ETF Research Reports
 
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