Coconut oil has a saturated fat called lauric acid, a type of MCT. It has been shown that lauric acid increases the good HDL cholesterol in the blood to help improve cholesterol ratio levels. Coconut oil lowers cholesterol by promoting its conversion to pregnenolone, a molecule that is a precursor to many of the hormones our bodies need. Coconut can help restore normal thyroid function. When the thyroid does not function optimally, it can contribute to higher levels of bad cholesterol.