Many Healthy Returns

Healthcare funds may be the right prescription for long-term stock market success

as distributors such as AmerisourceBergen Corp. and McKesson Corp. Annualized returns for Schwab Health Care Fund have been more than 21% for the past three years.

“Before you invest in a healthcare fund,” says Christopher Davis, an analyst at Morningstar, “compare its holdings with those of the mutual funds you already have.” If you already own the likes of Amgen or Pfizer, don’t double up — a specialized fund that owns other stocks may give you a shot at even healthier returns.

TOP HEALTHCARE FUNDS

Fund Name: Ticker 1-Year Ann. Total Return 3-Year Ann. Total Return 5-Year Ann. Total Return Minimum Initial Investment Toll- Free Number
Fidelity Select Medical Delivery FSHCX 2.43% 28.44% 17.39% $2,500 800-343-3548
Schwab Health Care SWHFX 6.31 21.51 12.41 2,500 800-435-4000
Alger Health Sciences A AHSAX 7.01 15.52 1,000 800-992-3863
T. Rowe Price Health Sciences PRHSX 8.99 11.93 10.86 2,500 800-638-5660
Fidelity Select Pharmaceuticals FPHAX 14.62 8.76 3.93 2,500 800-343-3548

*Based on 3-year perfomance. As of Sept. 22, 2006. Source: Morningstar Inc.

 

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