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The Best Mutual Funds of 2013

Japanese stocks, healthcare led these funds to the top

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Best Mutual Funds of 2013 #3: Fidelity Select Biotechnology (FBIOX)

best-mutual-funds-fbioxYTD Return: 65%

Fidelity Select Biotechnology (FBIOX) has achieved fine results this year as the biotechnology sector has been in the spotlight, attracting attention and investor assets as well.

Manager Rajiv Kaul has been on the fund since 2005 and is has positioned the midcap growth fund well in this period.

Up 65% YTD, FBIOX specializes in stocks that pursue promising therapies in personalized medicine and gene therapy. It is a risky yet promising subsector of the healthcare industry. Over time, the results have been rewarding — the fund is up an annualized 14.3% over the last 10 years, according to Morningstar data.

This performance has not gone unnoticed by investors, and fund assets have reached $7.8 billion.

Current top holdings include several of the same names held in FSPHX’s top five — such as Gilead Sciences, Amgen and Biogen — as well as Celgene (CELG) and Regeneron Pharmaceuticals (REGN).

Certainly, FBIOX is a fund with a narrow focus in a risky area of the stock market. However, for investors looking for a way to access the sector using a proven manager, this is a fine mutual fund.

Expenses are 0.81%, and turnover runs a modest 37% over the past year.

Article printed from InvestorPlace Media,

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