My pick for the foreign funds is International Dividend ( PID) -- it has a more consistent performance and a lower average price-to-earnings ratio.

In terms of income funds, I would pick Dynamic Leisure and Entertainment ( PEJ). The fund's three-month return of 18.9% is hard to ignore, even if its focus may not make it the classic defensive play.

For the health sector, the only fund on our radar is Dynamic Pharmaceuticals ( PJP). The thing I like about this fund is the consistency of its near-term performance.

Investors can also pick and choose from the list to construct a diversified portfolio of defensive funds.
Sam Patel, CFA, is the manager of mutual fund Research for the TheStreet.com Ratings.

In keeping with TSC's Investment Policy, employees of TheStreet.com Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.

While Patel cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.

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