3 Best Performing Biotech Funds So Far In 2019

The industry was also in news because of a number of collaborations this year. In October, Amgen announced a strategic collaboration with BeiGene to help the former expand its oncology presence in China.

Earlier this year, Biogen and C4 Therapeutics announced a collaboration to evaluate the use of the latter’s novel protein degradation platform. The companies plan to discover and develop treatments for patients with neurological conditions.

The Future of Biotechnology Shines

According to Global Market Insights, the size of the biotechnology market was valued at $399.4 billion in 2017. The market is expected to see a compound annual growth rate of 9.9% from 2018 to 2024.

Apart from the factors mentioned above, rise in chronic ailments such as cancer, asthma, arthritis, and diabetes, healthcare’s expanding reach in remote areas, and evolving research and development are instrumental in boosting the biotechnology sector.

Our Choices

We have, therefore, selected three mutual funds that invest in biotechnology companies. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging year-to-date returns. In addition, the minimum initial investment is within $5,000.

We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds.

Fidelity Select Biotechnology Portfolio (FBIOX - Free Report) fund aims for capital growth. The fund invests majority of its assets insecurities of companies primarily engaged in the research, development, manufacture, and distribution of biotechnological products and services, etc. These companies also gain considerably from scientific and technological advances in biotechnology.

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