Reliance Pharma Fund and SBI Healthcare Opportunities Fund are both sector-specific funds and have their investments made in the Healthcare sector. SBI Healthcare Opportunities Fund was earlier known as SBI Pharma Fund.

If we check the past performance, both these funds have performed better than the benchmark.

Reliance Pharma Fund

The investment objective of this fund is to generate steady returns by investing in equity or fixed income securities of pharma and other related companies.

Over the years this fund has performed much better than its benchmark NIFTY Pharma.

While we can see that the one and two-year returns for this fund are in negative for the benchmark whereas this fund has given positive returns. The risk involved in this fund is moderately high. The fund size is Rs 1948 crores and the expense ratio is 1.65 %.

Almost all the amount of this fund is invested in equities. Of the amount invested in equities, a majority is invested in large-cap, followed by mid cap and small cap.

Sector allocation is majorly in Pharma followed by around 15 % in Healthcare Services.

Returns are taxed at 15%, if investor redeems it before one year. After one year, investors are required to pay LTCG tax of 10 % on returns of more than Rs. One lakhs in a financial year.

The minimum amount for first-time investment is Rs. 5000 and second investment onwards the minimum amount is Rs. 1000. The minimum SIP amount is Rs. 100. Sailesh Raj Bhan is the fund manager of this fund.

Reliance Pharma Fund Details

NAV of Reliance Pharma Fund: Rs. 142.2421

RiskModerately High
Expense Ratio1.65 %
Fund size1948 Cr
1 year Return15.29 %
3 year Return1.31 %
5 year Return15.02 %

 

Top HoldingsSectorSize
Divis Laboratories LtdPharmaLarge Cap
Abbott India LtdPharmaMid Cap
Sanofi India LtdPharmaMid Cap
Cipla LtdPharmaLarge Cap
Biocon LtdPharmaLarge Cap

 

SBI Healthcare Opportunities Fund (SBI Pharma Fund)

The investment objective of the fund is to give the investors maximum growth opportunity through equity investments in scrips of growth oriented sectors of the economy.

There are five sub-funds devoted to specific investment themes like Information Technology, FMCG, investment in scrips presently out of favour, Pharmaceuticals and Emerging Businesses.

Over the years this fund has performed better than its benchmark NIFTY Pharma. Though the one year and three-year returns for this fund might be negative, but it is better than the benchmark. The risk involved in this fund is moderately high. The fund size is Rs 1133 crores and the expense ratio is 1.35%.

Almost all the amount of this fund is invested in equities. Of the amount invested in equities, a majority is invested in large cap and mid cap followed by the small cap.

Sector allocation is majorly in Pharma followed by around 14% in Healthcare Services.

Returns are taxed at 15%, if investor redeems it before one year. After one year, the investor is required to pay LTCG tax of 10% on returns of more than Rs. One lakh in a financial year.

The minimum amount for first-time investment is Rs. 5000 and second investment onwards the minimum amount is Rs. 1000. Minimum SIP amount is Rs. 500. Tanmaya Desai is the fund manager.

SBI Pharma Fund Details

NAV of SBI Pharma Fund: Rs. 120.2535

RiskModerately High
Expense Ratio1.35 %
Fund size1133 Cr
1 year Return-3.26 %
3 year Return-5.80 %
5 year Return13.57 %

 

Top HoldingsSectorSize
Cipla LtdPharmaLarge Cap
Sun Pharma LtdPharmaLarge Cap
Divis Laboratories LtdPharmaLarge Cap
Strides Shasun LtdPharmaMid Cap
Alkem Laboratories LtdPharmaLarge Cap

Conclusion

If we check the past year performances, then Reliance Pharma Fund has outperformed SBI Healthcare Opportunities Fund.

But that is not the only thing to be considered. Strategies followed by the fund managers for their funds also play a very vital role in the performance of the mutual funds.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.