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

Risk Moderately High
Expense Ratio 1.65 %
Fund size 1948 Cr
1 year Return 15.29 %
3 year Return 1.31 %
5 year Return 15.02 %

 

Top Holdings Sector Size
Divis Laboratories Ltd Pharma Large Cap
Abbott India Ltd Pharma Mid Cap
Sanofi India Ltd Pharma Mid Cap
Cipla Ltd Pharma Large Cap
Biocon Ltd Pharma Large 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

Risk Moderately High
Expense Ratio 1.35 %
Fund size 1133 Cr
1 year Return -3.26 %
3 year Return -5.80 %
5 year Return 13.57 %

 

Top Holdings Sector Size
Cipla Ltd Pharma Large Cap
Sun Pharma Ltd Pharma Large Cap
Divis Laboratories Ltd Pharma Large Cap
Strides Shasun Ltd Pharma Mid Cap
Alkem Laboratories Ltd Pharma Large 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.