Investors often rely on the healthcare sector to safeguard their investments. This is because demand for healthcare services does not vary so much with market conditions and investments in the sector provide sufficient protection to the capital invested. Many pharma companies also generate regular dividends. Companies that pay consistent dividends are financially stable and generate consistent cash flows irrespective of market conditions. Mutual funds are perfect choices for investors looking to enter this sector since they possess the advantages of wide diversification and analytical insight.

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, their Zacks Rank and past performance.

Live Oak Health Sciences Fund (LOGSX - MF report) invests a large portion of its assets in equity securities of health companies that are involved in the research, development, production, or distribution of products or services related to healthcare, medicine, or the life sciences. LOGSX generally invests in common stocks of U.S. companies. The fund may also invest in common stocks of foreign companies and American Depository Receipts ("ADRs"). LOGSX seeks long-term growth of capital.Live Oak Health Sciences Fund has a three-year annualized return of 16.9%.

As of March 2016, LOGSX held 29 issues with 7.23% of its assets invested in Amgen Inc. (AMGN)

Delaware Healthcare A (DLHAX - MF report) seeks long-term capital growth. DLHAX invests a large portion of its assets in the equity securities of healthcare companies. These companies produce and distribute products that are required in medical industries. Delaware Healthcare A is non-diversified and has a three-year annualized return of 13.8%.

Liu-Er Chen is the lead manager and has managed DLHAX since 2007.

Fidelity Select Medical Equipment & Systems (FSMEX - MF report) invests a major portion of its assets in companies that are primarily involved in medical equipment and devices and related technologies sector. FSMEX focuses on acquiring common stocks of companies by analyzing factors including financial strength and economic condition. FSMEX invests in both U.S. and non-U.S. companies. Fidelity Select Medical Equipment & Systems has a three-year annualized return of 22.9%.

As of May 2016, FSMEX held 57 issues with 22.43% of its assets invested in Medtronic PLC.

To view the Zacks Rank and past performance of all healthcare mutual funds, investors can click here to see the complete list of funds.