At the start of the week, the Australian Financial Review reported that a number of Australia’s leading investment banks have reasonably pessimistic year-end forecasts for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

The equity teams from Citi, Credit Suisse, and UBS have all forecast the benchmark index finishing the year at 5,500 points, which is more or less the level the index is trading at right now.

One investment bank which disagrees with these forecasts is Morgan Stanley. Their equity team is extremely bearish and is predicting that the index will finish 2016 almost 13% lower at just 4,800 points.

Judging by these forecasts investing in an index fund may not produce the strongest returns this year. But don’t worry, I believe an investment in the following three healthcare shares could easily thump the market between now and the end of the year.

Impedimed Limited (ASX: IPD)

Medical device company Impedimed recently launched its first product into the health and wellness market. This device allows users to track everything from their body composition, fluid status, and hydration levels through a variety of settings. Furthermore, the company’s L-Dex lymphoedema detection product looks very promising in my opinion. Although an investment at this stage is perhaps a little too high risk for myself, those with a higher risk tolerance could potentially find strong returns here.

Monash IVF Group Ltd (ASX: MVF)

This growing fertility treatment company really caught my eye with its strong interim results earlier this year. In those results, Monash IVF reported patient numbers growth of an impressive 17% year-on-year. As a result of these strong patient numbers, the company was able to deliver incredible top and bottom line growth of 31.6% and 27.6%, respectively. With management expecting demand for its services to continue to increase, I think Monash IVF would be a great addition to most portfolios.

Mayne Pharma Group Ltd (ASX: MYX)

Mayne Pharma came under the spotlight earlier this year after it successfully raised equity in order to complete the US$652 million acquisition of a portfolio of drug products from Teva Pharmaceutical Industries and Allergan plc. I believe this astute acquisition has transformed the company and now makes it a great long-term investment. The acquisition of 37 approved and five FDA filed products is expected to be significantly accretive to earnings from next year onwards.

Lastly, before making an investment in either of these shares I would highly recommend taking a look to see if you own one of these three rotten ASX shares. Each could be harming your portfolio and might be best swapped out if you ask me.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.