'I've made a fortune from healthcare shares – here are my share tips'

The other types of shares are biotech and medical device firms that are coming up with new drugs and inventions. A company we really like at the moment is Esperion, which has invented a drug that lowers cholesterol.

Another is Endologix, which has invented a product for a really nasty condition called an aortic aneurysm, which is essentially where a big blood vessel in a persons chest can pop. The firm has come up with a product that can stop this from happening and keep people alive for an extra 20 to 30 years.

But Mr Mahony said investing in drug companies did not come without risk. Most drugs fail in clinical trails, so there is a lot of clinical development risk, he said.

The other main threats that can sour investor sentiment towards health care shares is regulatory and political meddling.

We try and avoid parts of the market where regulation is changing rapidly, so at the moment with the massive period of US health care reform we are avoiding certain areas like nursing homes and rehabilitation care, because a lot of change is taking place.

Fund experts warn that backing health care was not an easy ride as the sector has a tendency to quickly fall in and out of fashion. For this reason it is best to invest for a lengthy period, especially to capture profit from themes such as ageing populations.

Russ Mould of AJ Bell Youinvest, the fund shop, said investors should be willing to buy and hold one of these specialist funds for at least 10 years.

Mr Mould said the Polar Capital fund was one of his favourites, but the fund charge was high and a performance fee could also be applied, which would eat into investors returns.

The fund consistently beats peers and has served investors well. The only downside is the fund charge, which is higher than other funds that invest in health care, but arguably its superior performance is worth paying extra for, he said.

Mr Mould said the other fund he rates as a buy is the Worldwide Healthcare Trust. The fund manager Samuel Isaly has been investing in global healthcare shares since the late Sixties and he regularly turns his experiences into strong outperformance.

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'I've made a fortune from healthcare shares - here are my share tips'