Best Mutual Funds to Buy for a Market Correction: Fidelity Select Biotechnology (FBIOX)
Expenses: 0.73%, or $73 annually per $10,000 invested.
Minimum Initial Investment: $2,500
Biotech stocks had a terrible 2016 but are looking oversold and showing market leadership in 2017. Therefore buying shares of funds like Fidelity Select Biotechnology Portfolio (MUTF:FBIOX) can be smart, especially on dips.
Although I chose Fidelity Select Health Care Portfolio (MUTF:FSPHX) to be one of the 10 best Fidelity funds for 2017, FBIOX could be the biggest winner in the first half of the year, assuming the bull market continues strong following an early year correction.
Pharma and biotech stocks like FBIOX top holdings Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) and Biogen Inc (NASDAQ:BIIB) could jump quickly when the bull market regains its footing after a selloff.