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Healthcare funds are investment funds that specifically focus on companies within the healthcare sector. These funds typically include investments in pharmaceutical, biotechnology, medical device, and healthcare services companies. Investors in healthcare funds seek to capitalize on the growth potential of the healthcare industry, which is driven by factors such as an aging population, advances in medical technology, and increasing global healthcare spending. Healthcare funds may be actively managed or passively managed and can offer investors exposure to a diversified portfolio of healthcare-related securities.