Healthcare remains a resilient sector, making health-focused mutual funds attractive to investors seeking growth and diversification. Today, we have focused on two healthcare mutual funds – JFNAX and BHCHX – with over 20% upside potential in the next twelve months, as projected by analysts.
Janus Henderson Global Life Sciences Fund (JFNAX)
The JFNAX fund provides exposure to the rapidly growing life sciences industry. It primarily invests in companies involved in healthcare, biotechnology, pharmaceuticals, and medical technology. The fund has a low expense ratio of 0.98%, making it a cost-effective option. Interestingly, JFNAX has generated a return of 10.9% over the past six months.
Overall, JFNAX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 87 have Buys, and 36 have a Hold rating. The analysts’ average price target on the JFNAX fund of $90.71 implies a 23.5% upside potential from the current levels.
Baron Health Care Fund Institutional Shares (BHCHX)
The BHCHX fund seeks to provide long-term capital appreciation. It invests in a diversified portfolio of healthcare companies, including pharmaceuticals, biotechnology, medical devices, and healthcare services. The BHCHX fund has returned about 6% over the past six months.
On TipRanks, BHCHX has a Strong Buy consensus rating. This is based on 38 stocks with a Buy rating and three stocks with a Hold rating. The analysts’ average price target on the BHCHX fund of $24.62 implies a 22.85% upside potential from the current levels.
Concluding Thoughts
Mutual funds have several benefits, such as higher liquidity than individual stocks. This, coupled with the projected upside potential of JFNAX and BHCHX, makes these funds worth considering by investors. However, a prudent approach necessitates in-depth research before investing.
