What are some top-ranked biotechnology mutual funds?


Quick Answer

ProFunds Biotechnology UltraSector, Franklin Biotechnology Discovery and Fidelity Select Biotechnology were rated highly by Zacks Independent Research Service because of good year-to-date returns as of September 2013. The company recommends biotechnology mutual funds because health care demand is increasing for aging populations and because rising income levels allow premium pricing for treatments.

Continue Reading

Full Answer

ProFunds Biotechnology UltraSector had $354 million in net assets in 2013, reports Zacks. It tracks the daily performance of the Dow Jones U.S. Biotechnology Index. Year-to-date returns were 68.48 percent as of September 2013. The non-diversified fund's top three holdings were Amgen, Gilead Sciences and AbbVie.

Franklin Biotechnology Discovery requires a minimum investment of $1,000. The fund's investment strategy is on common stock of biotechnology and drug discovery companies, according to Zacks. Year-to-date returns were 48.07 percent in September 2013. The fund invests in 82 securities, and the top three assets were Gilead Sciences, Celgene, and Biogen Idec.

Fidelity Select Biotechnology requires a minimum $2,500 initial investment. It focuses on the common stock of biotechnology companies, however, it does purchase domestic stock, notes Zacks. It is a diversified fund and held 158 assets in September 2013. With 14.48 percent allocated to Gilead Sciences and 18.83 percent allocated to Amgen and Celgene, the fund had year-to-date returns of 46.59 percent.

Learn more about Investing

Related Questions