The pharmaceutical sector is composed of surprising attributes, in terms of its organizational purpose as well as the essence of its core business activities, that are little recognized outside the sector but have a considerable influence on the development of developing fresh pharmaceuticals for their patients.
The pharmaceutical sector is one of the most popular in the Indian stock market, with Pharma stocks returning 30 percent CARG between 2009 and 2016, which was a blooming period for the finest pharma stocks.
An investor can invest in the pharmaceutical sector by purchasing direct equities of various listed pharma companies or by purchasing the best pharmaceutical mutual funds that are focused on the industry.
Sectoral funds are mutual funds that only invest in stocks from one industry. In India, various sector funds (such as banking and public sector funds, technology funds, and so on) are available, and pharma funds are one of them.
In this blog, we have comprised a list of the Top Pharma Mutual Funds in India.
Pharma Mutual Funds
According to the SEBI mandate, pharma funds must invest at least 80% of their total assets in the specified sector. Only if you are an aggressive investor with a high-risk tolerance should you consider investing in pharma funds.
If you have a complete understanding of pharmaceutical companies, you should consider investing in pharma funds. Investing in pharma funds may imply attempting to take a risky gamble in one industry.
Only invest in pharma funds if you intend to hold them for the long term.
A systematic investment plan, or SIP, could be used to invest in pharma funds. It allows you to invest in the pharmaceutical fund over time.
Invest in pharma funds only if your overall equity portfolio lacks adequate healthcare exposure. A large-cap-oriented portfolio, on the other hand, has a pharma sector allocation of around 3% – 5%. Mid-cap and multi-cap funds may be more exposed to the pharmaceutical and healthcare sectors.
Nippon India Pharma Fund Direct Growth is an Equity Mutual Fund Scheme launched by Nippon India Mutual Fund and is considered one of the best Pharma Index Funds in India.
The scheme seeks to generate consistent returns by investing in equity/equity-related or fixed-income securities of pharma and other associated companies.
Tata India Pharma & HealthCare Fund Direct Growth is an Equity Mutual Fund Scheme launched by Tata Mutual Fund and is widely known as the Best Pharma Fund of India.
The scheme seeks long term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of the companies in the pharma & healthcare sectors in India.
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund Direct Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund and is a pretty prominent Pharma Fund.
The scheme seeks to generate long-term capital appreciation by creating a portfolio that is invested in equity and equity-related securities of pharma, healthcare, hospitals, diagnostics, wellness, and allied companies.
Aditya Birla Sun Life Pharma & Healthcare Fund Regular Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund and is known as the most relevant Pharma Sector Mutual Fund.
The scheme seeks to provide long-term capital appreciation by investing in equity/equity-related instruments of the companies in the Pharmaceuticals, Healthcare, and Allied sectors in India.
ITI Pharma and Healthcare Fund Direct Growth is an Equity Mutual Fund Scheme launched by ITI Mutual Fund, which is one of the most distinguished Pharma Funds in India.
The scheme seeks to generate long-term capital appreciation through investing in equity and equity-related securities of companies engaged in Pharma and Healthcare.
This was the list of the best pharma mutual funds 2023. Remember, investing in the pharma sector can be risky for some and fruitful for others. Hence, it is necessary to consider all the possible factors and your investment appetite before you make up your mind to invest in the pharma sector.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS