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Best Pharma Sector Funds 2022

08 June 2022

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.

Best Pharma Mutual Funds India 2022

S.No.

Pharma Mutual Funds

1.

Nippon India Pharma Fund Direct-Growth

2.

Tata India Pharma & Healthcare Fund Direct-Growth

3.

ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D.) Fund Direct-Growth

4.

Aditya Birla Sun Life Pharma & Healthcare Fund Regular Growth

5.

ITI Pharma & Healthcare Fund Direct-Growth

 

Factors to Consider Before Investing in Pharma Mutual Funds in 2022

  • Deciding About Investing in Pharma 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.

  • Having Adequate Knowledge is Important

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.

  • Investment Term

Only invest in pharma funds if you intend to hold them for the long term.

  • SIP Plans

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.

  • Investment Portfolio

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.

Performance Of the Pharma Mutual Funds of 2022

1) Nippon India Pharma Fund Direct-Growth

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. 

2) Tata India Pharma & Healthcare Fund Direct-Growth

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.

3) ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D.) Fund Direct-Growth

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.

4) Aditya Birla Sun Life Pharma & Healthcare Fund Regular Growth

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.

5) ITI Pharma & Healthcare Fund Direct-Growth

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.

Conclusion

This was the list of the best pharma mutual funds 2022. Despite having entirely separate privileges for the purchase of a pharmaceutical drug for the duration of its patent life, increased regulation is driving up costs and lengthening development times, resulting in a shorter time to patent expiry; increasing risk aversion among administrative management workgroups is making a significant contribution to a slowing economy in the identification of innovative pharmaceuticals and decreasing risk profile in clinical groups and governing authorities is bringing down the performance level for marketing authorization making some people assume that the present-day Pharmaceutical Occupation Model a less feasible one.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

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Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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