One of the best ways to safeguard investments is by parking money in the healthcare sector. This is because demand for healthcare services does not change with market conditions. 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 looking to enter this sector since they possess the advantages of wide diversification and analytical insight.
Below, we share with you three healthcare mutual funds, namely Franklin Strategic Biotechnology Discovery Fund FBDIX, Fidelity Select Biotechnology FBIOX and Fidelity Advisor Health Care Fund FACTX. 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 Strategic Biotechnology Discovery Fund invests most of its net assets in equity securitiesof biotechnology companies and discovery research firms. FBDIX advisors may also invest a small portion of its net assets in equity or debt securities of any type of issuer.
Franklin Strategic Biotechnology Discovery Fund has three-year annualized returns of 20.9%. As of the end of July 2025, FBDIX held 77 issues, with 7.5% of its assets invested in Gilead Sciences.
Fidelity Select Biotechnology fund invests most of its net assets in common stocks of foreign and domestic companies 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. FBIOX advisors choose to invest in stocks based on fundamental analysis factors like the issuer’s financial condition, industry position, as well as market and economic conditions.
Fidelity Select Biotechnology fund has three-year annualized returns of 15.1%. FBIOX has an expense ratio of 0.63%.
Fidelity Advisor Health Care Fund invests the majority of its net assets in common stocks of foreign and domestic companies that are engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. FACTX 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 Health Care Fund has five-year annualized returns of 5.6%. Edward Yoon has been the fund manager of FACTX since October 2008.