Grab These 3 Top-Ranked Healthcare Funds for Scintillating Returns

Investors often rely on the healthcare sector to safeguard their investments. This is because healthcare services do not see their demand varying too much with respect to 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 steady cash flows, irrespective of market conditions. Mutual funds are the perfect choice 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, namely Franklin Biotechnology Discovery Fund FBDIX, Fidelity Select Pharmaceuticals Portfolio FPHAX and Fidelity Select Biotechnology Portfolio FBIOX. 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.

Franklin Biotechnology Discovery Fund primarily invests in biotechnology and discovery research companies, mainly through equities. It may also invest in other issuers’ equity or debt securities and follows a non-diversified strategy.

Franklin Biotechnology Discovery Fund has three-year annualized returns of 29.7%. As of April 2026, FBDIX held 81 issues, with 5.5% of its assets invested in Jazz Pharmaceuticals.

Fidelity Select Pharmaceuticals Portfolio primarily invests in pharmaceutical and drug-related companies worldwide, mainly through common stocks. Investment selection is based on fundamental analysis of company, industry, market and economic factors. It is non-diversified.

Fidelity Select Pharmaceuticals Portfolio has three-year annualized returns of 20%. FPHAX has an expense ratio of 0.67%.

Fidelity Select Biotechnology Portfolio primarily invests in common stocks of biotechnology companies worldwide, focusing on firms advancing or benefiting from biotechnology innovation. Investments are selected through fundamental analysis of company, industry, market and economic factors. It is non-diversified.

Fidelity Select Biotechnology Portfolio has three-year annualized returns of 24%. Rajiv Kaul has been the fund manager of FBIOX since 2005.

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).

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