3 Top-Ranked Healthcare Mutual Funds Set for Solid Growth

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 top-ranked Healthcare mutual funds, namely Fidelity Select Biotechnology Portfolio FBIOX, Vanguard Health Care Fund VGHCX and Janus Henderson Global Life Sciences JNGLX. 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 Select Biotechnology Portfolio mainly invests in common stocks of biotechnology-focused companies, including global firms, using fundamental analysis of financial strength, industry position and market conditions. FBIOX operates as a non-diversified fund.

Fidelity Select Biotechnology Portfolio has three-year annualized returns of 19.5%. As of November 2025, FBIOX held 167 issues, with 14.3% of its assets invested in AbbVie.

Vanguard Health Care Fund primarily invests in companies involved in healthcare products and services, including pharmaceutical manufacturers, medical equipment suppliers, hospitals and research organizations. VGHCX advisors may also invest significantly in foreign stocks, and follows a non-diversified investment strategy.

Vanguard Health Care Fund has three-year annualized returns of 9.5%. VGHCX has an expense ratio of 0.33%.

Janus Henderson Global Life Sciences primarily invests in companies with a life sciences focus, allocating a significant portion to that sector, guided by portfolio management’s assessment and maintaining a dedicated exposure to life sciences industries.

Janus Henderson Global Life Sciences has three-year annualized returns of 14.1%. Andrew Acker has been the fund manager of JNGLX since May 2007.

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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