4 Best Biotech Mutual Funds For Q4

The beginning of this month marked an important period for investors eyeing the U.S. healthcare sector. Three biotech companies went public, raising a whopping $320 million and listing shares on the Nasdaq.

Viela Bio raised the highest amount with $150 million in its IPO by issuing 7.9 million shares at $19 each. Further, Frequency Therapeutics and Aprea Therapeutics raised $84 million and $85 million, respectively. These companies braved extreme stock market volatility and went public. Moreover, all these companies have performed well since listing their shares.

Moreover, there has been a rise in sociopolitical campaigns to raise awareness regarding breast cancer and related diseases across the United States. Such events shape up the future of biotech industry. This is because new companies come up in order to tackle problems related to old or existing drugs, which potentially leads to a bump in biotech stocks. Companies making cancer drugs or therapeutics related to rare diseases seize such opportunities and gain big.

Historically, space has been risky from investors’ standpoint. This is because they bet on the assumption that products in the pipeline would turn out to be highly successful. But any failure in a key clinical trial can make things really unpleasant for investors.

Nonetheless, a higher number of mergers and acquisitions (M&A) and an increased number of FDA approvals have been pivotal in shaping up the fortunes of the biotech sector. It is expected that the fourth quarter might witness a surge in biotech stocks. Let’s look at some of the mutual funds from the space, expected to perform well in the current quarter.

4 Best Funds to Buy in Q4

Given such bullish circumstances, we have highlighted four biotech mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) and are poised to gain from such factors. Moreover, these funds have encouraging year-to-date (YTD) returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.

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