How to invest $5,000 in ASX 200 healthcare shares today

While ASX 200 healthcare shares have generally performed well in 2020, here are my 3 top picks to invest $5,000 in for the long-term.

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ASX 200 healthcare shares have had a broadly strong start to the year. While the S&P/ASX 200 Index (ASX: XJO) is down 19.73% this year, the nature of the coronavirus pandemic has meant that some healthcare companies have climbed in value.

If you've got some spare cash to invest in 2020, here are 3 of my top ASX 200 healthcare shares to buy right now.

3 ASX 200 healthcare shares to buy in 2020

Let's start with one of the biggest companies on the ASX: CSL Limited (ASX: CSL). The CSL share price has climbed 9.46% in 2020 and its market capitalisation has swelled to $138 billion.

CSL is a global biotechnology leader that researches, develops, manufactures, and markets products to treat and prevent serious human medical conditions. CSL has been active despite the pandemic and is even working on a potential plasma treatment with the support of the federal government. 

That could make CSL shares a good buy given its size, 0.96% dividend yield and non-cyclical earnings.

Another top ASX 200 healthcare share to buy at the moment is Ramsay Health Care Limited (ASX: RHC). Ramsay is a private healthcare provider with operations across Australia, the UK, France, Indonesia and Malaysia. The company specialises in surgery, rehabilitation and psychiatric care and its share price was under pressure this year.

In fact, Ramsay shares were trading near their 52-week high of $80.93 in mid-February. However, the COVID-19 pandemic smashed the Ramsay share price to a 52-week low of $46.12 in mid-March, before it recovered 42% to its current $65.51 valuation.

Ramsay shares are yielding 2.35% right now and could be back in the buy zone. With pandemic restrictions being wound back, the potential strain on private healthcare could start to be eased. That means Ramsay's operations could go back to a steady state with the added bonus of non-cyclical earnings in 2020 and beyond.

Finally, the Polynovo Ltd (ASX: PNV) share price could be a good way to invest $5,000 in 2020. Polynovo's patented NovoSorb product helps with the treatment of burns and has had widespread success. In fact, the ASX 200 healthcare share has been rebounding strongly in recent weeks after continuing to post record monthly sales.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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 Scott Phillips.

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