The healthcare sector is one of the most desirable avenues for parking one’s money when markets are headed south. Demand for such services usually remains unchanged even during an economic downturn and investments in the sector provide sufficient protection to the invested capital. Several pharmaceutical companies also provide regular dividends, which can help to mitigate losses from falling share prices. Health care mutual funds are perfect for investors looking to invest in this sector.

Below we share with you three top-ranked healthcare mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of healthcare funds.

Hartford Healthcare HLS IB (HBGHX - Free Report) seeks long-term growth of capital. HBGHX invests a large share of its assets in securities of both U.S. and non-U.S. health care companies. The fund invests in securities of companies of any size located widely across countries. HBGHX is expected to maintain a cash balance of not more than 10% of its assets. Hartford Healthcare HLS IB has a three-year annualized return of 16.3%.

HBGHX has an expense ratio of 1.11% as compared to the category average of 1.27%.

Delaware Healthcare I (DLHIX - Free Report) invests the majority of its assets in securities of healthcare companies, which are involved in developing and distributing healthcare related products and services. DLHIX seeks capital appreciation for the long run. Delaware Healthcare I is non-diversified and has a three-year annualized return of 12.3%.

Liu-Er Chen is the portfolio manager of DLHIX since September 2007.

Fidelity Select Medical Delivery Portfolio (FSHCX - Free Report) seeks appreciation of capital. FSHCX invests the bulk of its assets in companies that either own or are involved in operating hospital and nursing homes, and are related to the healthcare services sector. The fund focuses on acquiring common stocks of issuers all over the world. Fidelity Select Medical Delivery Portfolio has a three-year annualized return of 13%.

As of July 2016, FSHCX held 40 issues with 22% of its assets invested in UnitedHealth Group Inc. (UNH)