If you have a regular brokerage account, you can easily add healthcare stocks to your taxable investment portfolio. If you don’t already, check out our listing of the best online brokerage accounts to get started.
Retirement investors can buy healthcare stocks in tax-advantaged retirement plans, like individual retirement accounts (IRAs). But if you have a 401(k), you’ll likely instead have to look into mutual funds that focus on the healthcare industry, rather than individual stocks.
Read More: How To Buy Stocks
When you’re considering a new investment, in healthcare stocks or any other market sector, doing your due diligence is always the first step. While the large-cap stocks listed above can be very safe bets, more volatile small-cap biotech stocks can be incredibly risky investments.
But really, buying any individual stock is a risky game. Instead, consider purchasing exchange-traded funds (ETFs) or index funds that track diversified indexes focused on the healthcare sector. These are less swayed by the individual ups and downs of any one company but provide solid, steady long-term growth. That’s why financial advisors recommend them for most people.
The author(s) held no positions in the securities discussed in the post at the original time of publication.
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