Top 6 Best Health Sector Stock Mutual Funds 2012

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One of the defensive sector mutual funds is health sector. Investing in these health mutual funds provides a chance for investor to protect their portfolio during good or bad market conditions. Some of the best health mutual funds are: T. Rowe Price Health Sciences, Prudential Jennison Health Sciences A, Fidelity Select Biotechnology, etc.

Health Sector Funds

Investors often rest on on the healthcare sector to defend their valuable investments during a bad market environment. Healthcare and related services continue in demand during difficult market conditions and are a safe haven in difficult times. Several pharmaceutical industries also distribute regular dividends, which help in combating losses from falling stock values.

Choosing health mutual funds are the right selection for investors looking to enter this sector. There is other investment funds can be used as well such as exchange traded funds (ETFs), and closed end funds (CEFs).

Best Health Mutual Funds

Selecting the best health mutual funds is done by looking into the fund long term performance. You will also find other fund review such as fund’s manager, sales load, expense ratio, dividend yield, top holding, Morningstar rating, etc.

Top 8 Health Sector Stock Mutual Funds of 2012 are:
  1. T. Rowe Price Health Sciences (PRHSX)
  2. Rydex Biotechnology Investor (RYOIX)
  3. Prudential Jennison Health Sciences A (PHLAX)
  4. Fidelity Select Biotechnology (FBIOX)
  5. Fidelity Select Pharmaceuticals (FPHAX)
  6. BlackRock Health Sciences Opportunities Investor A (SHSAX)
  7. Live Oak Health Sciences (LOGSX)
  8. Franklin Biotechnology Discovery A (FBDIX)
updated on 4/9/2012

1. T. Rowe Price Health Sciences (PRHSX)

The T. Rowe Price Health Sciences fund objective is to achieve long-term capital appreciation. This mutual fund utilizes its assets to purchase the companies’ common stocks engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences. It invests the majority of assets in large- and mid-capitalization companies.

This health mutual fund has total net assets of $3.54 billion. It is also rated with 5-stars rating and Gold rating by Morningstar. This best fund has YTD return of 13.65%. It is managed by Kris H. Jenner since 2000. The annual expense ratio is 0.82%. The 10-year annualized return is 9.29%. This fund is available for purchase from 96 brokerages.

As of January 2012, the top 10 stocks in its holdings are Alexion Pharmaceuticals, Celgene, Covidien, Dentsply International, Gilead Sciences, Incyte Corp, McKesson, SXC Health Solutions, United Health Group and Valeant Pharmaceuticals International.

2. Rydex Biotechnology Investor (RYOIX)

The Rydex Biotechnology fund invests majority of its net assets in equity securities of Biotechnology Companies that are traded in the United States. It may invest in derivatives which mainly consist of futures contracts & options on securities, futures contracts, and stock indices.

This healthcare mutual fund is part of the Guggenheim Investments family fund. It is managed by Michael P. Byrum. The fund’s annual expense ratio is 1.39%. The minimum initial investment for brokerage account is $2.500 and $1.000 for retirement account. There is no management fee and no sales charge for investing in this top performer mutual fund. The 1-year annualized return is 29.59%.

As of February 2012, the top holdings of this fund are Amgen Inc (10.19%), Gilead Sciences Inc (7.55%) and Celgene Corporation (7.32%). The top sectors or industrials are Biotechnology (87.10%) and Life Sciences Tools & Services (12.43%).

3. Prudential Jennison Health Sciences A (PHLAX)

Prudential Jennison Health Seciences
The investment objective of Prudential Jennison Health Sciences fund is to provide long-term capital appreciation. This mutual fund generally invests >80% of its assets in equity and equity-related securities of companies within the health sciences sector. It may take part in the initial public offering (IPO) market. It is non-diversified.

The YTD return of this PHLAX fund is 12.09%. Morningstar has rated this health mutual fund with 4 stars rating. It has been in the market since 1999. This top performer fund is available for purchase through 97 brokerages. Since its inception, it has 9 years of positive performance. The best 1-year total return was in year 2000 with 75.47%. The fund dividend yield is 0.0% and is paid annually, if any.

The top largest industries are Biotechnology (43.3%) and Pharmaceuticals (24.1%). The top 5 stocks as of January 2012 are Alexion Pharmaceuticals (7.8%), Biomarin Pharmaceuticals (4.9%), United Health Group (3.8%), Shire Pharmaceuticals (3.4%) and Vertex Pharmaceuticals (3.2%).

4. Fidelity Select Biotechnology Portfolio (FBIOX)

The Fidelity Select Biotechnology Portfolio fund invests mainly in common stocks of companies principally engaged in the research, development, manufacture, & distribution of various biotechnological products, and companies that benefit considerably from scientific and technological advances in biotechnology. This health mutual fund may invest in securities of foreign issuers.

Best US Domestic Stock Mutual Funds 2011

Rajiv Kaul has been the current fund manager since 2005. This best performing fund has an annual expense ratio of 0.86%. This figure is lower compared to the average in category which is 1.57%. The fund has no management fee and sales charge. The annual holdings turnover as of March 5, 2012 is 119.00%. It has 3-year beta of 0.82. The fund CUSIP is 316390772.

As of December 2012, the top holdings are Amgen Inc, Gilead Sciences Inc, Biogen Idec Inc, Alexion Pharmaceuticals Inc, Pharmasset Inc, Vertex Pharmaceuticals Inc, Biomarin Pharmaceuticals Inc, Spectrum Pharmaceuticals Inc, Celgene Corp and Onyx Pharmaceuticals Inc. These top 10 holdings represent 50.66% of the total portfolio.

5. Fidelity Select Pharmaceuticals Portfolio (FPHAX)

The Fidelity Select Pharmaceuticals Portfolio fund seeks capital appreciation. The fund usually invests majority of assets in securities of companies primarily engaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. It may invest in foreign companies stocks. The fund is considered as a non-diversified mutual fund.

Fidelity Select Pharmaceuticals
The total net assets of this healthcare mutual fund are $715.83 million. The fund has 12-month dividend yield of 0.78%. Morningstar is rated this fund with 4-star rating for its performance. Andrew Oh is the current fund manager. The most recent dividend distributed in December 2011 is $0.08. The annual holdings turnover as of March 5, 2012 is 102.00%. The 5-year annualized return is 20.75%. The fund has minimum initial purchase of $2.500.

As of January 2012, the top 5 stocks are Sanofi Spon Adr, Glaxo Smith Klien PLC Spons Adr, Merck & Co Inc New, Pfizer Inc, and Valeant Pharmaceuticals International. It has a total of 112 holdings. The top country diversification is USA (60.05%), United Kingdom (11.62%), France (7.13%), Canada (5.04%) and Switzerland (4.96%).

6. BlackRock Health Sciences Opportunities Investor A (SHSAX)

The BlackRock Health Sciences Opportunities fund was first introduced to public in December 1999. It is rated with 4-stars rating by Morningstar. The 10-year annualized return is 10.99%. The fund has total net assets of $1.77 billion. The fund has annual expense ratio of 1.31%.

Investors can start investing in this best fund with minimum initial purchase of $1.000. The maximum sales charge is 5.25%. This fund is available for purchase through 104 brokerages.

7. Live Oak Health Sciences (LOGSX)

This Live Oak Health Sciences fund is managed by Mark W. Oelschlager since 2001. As part of no load fund, it also has an expense ratio of 1.25%. The current dividend yield is 0.44%. This health mutual fund is open to new investor and can be invested with as little as $2,000. This best health mutual fund is rated with 4 stars rating.

8. Franklin Biotechnology Discovery A (FBDIX)

Franklin Biotechnology Discovery fund is part of load mutual fund. It has a sales load of 5.75%. The total net assets are $427 million. The annual holdings turnover rate is 235%. The top 3 stocks in its holdings are: Gilead Sciences Inc, Celgene Corporation, and Amgen Inc.

This health sector stock mutual fund has returned 16.3% over the past 3 years, 6.43% over the past 5 years, and 5.02% over the past 10 years. It has 2 stars rating from Morningstar.

Disclosure: No Position

Other Mutual Funds post:

Health Stock Fund Performance

NoNameTicker1 Year Return %3 Year Return %5 Year Return %10 Year Return %Expense Ratio
1T. Rowe Price Health SciencesPRHSX18.69%22.90%9.09%9.29%0.84%
2Rydex Biotechnology InvRYOIX29.59%19.39%9.03%5.07%1.39%
3Prudential Jennison Health Sciences APHLAX20.58%21.41%8.29%10.63%1.25%
4Fidelity Select BiotechnologyFBIOX32.21%17.88%7.97%5.75%0.87%
5Fidelity Select PharmaceuticalsFPHAX14.02%20.75%7.46%6.05%0.94%
6BlackRock Health Sciences Opps Inv ASHSAX8.85%14.64%7.05%10.99%1.32%
7Live Oak Health SciencesLOGSX13.63%20.59%6.46%4.65%1.35%
8Franklin Biotechnology Discovery AFBDIX22.48%16.30%6.43%5.02%1.32%

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