T. Rowe Price Health Sciences Fund
Health care certainly is a defensive industry. After all, will you forgo medical treatment if the economy is shaky? Probably not.
But health care also has a strong growth profile thanks to a great driver in demographics. Not only is the population aging in the U.S., but also in many other major countries like China.
A solid mutual fund for health care is T. Rowe Price Health Sciences (MUTF:PRHSX). While it has a number of large companies in its portfolio, such as Merck & Co. (NYSE:MRK) and Amgen (NASDAQ:AMGN), the fund also will invest in early-stage firms that are more likely to see breakout growth.
No doubt, this has been an effective strategy. PRHSX beat the S&P by 10 percentage points during the downturn, and has seen annual average returns of 14% for the past decade. It’s also clobbering 2012 with 31% gains year-to-date.
PRHSX has no load, fees are a low 0.82% and it carries a 5-star Morningstar rating.