Thematic Fund - Category - Pharma & Healthcare Fund

Thematic Fund - Category - Pharma & Healthcare Fund

The India's Pharma and Healthcare Fund is a mutual fund product that manages investments in businesses engaged in the pharmaceutical and healthcare industries. The benefits and drawbacks of participating in such a scheme are listed below, along with information on who these schemes are aimed at in India.

Fund Statistics

AUM (Cr) 13,144
first Started in 1,999
Total schemes 10
3-YR Avg return 15.24
5-YR Avg return 12.11
10-YR Avg return 12.95

Merits:

  1. High growth potential: The pharmaceutical and healthcare industries in India have demonstrated substantial development potential throughout the years, and this trend is anticipated to continue. Investors can benefit from this growth potential by contributing to such a fund.
  2. Spreading risk: A Pharma and Healthcare fund offers investors diversification across several businesses in the pharmaceutical and healthcare industries.
  3. Professional Management: The fund is managed by experts who have in-depth understanding of the pharmaceutical and healthcare industries; as a result, they choose wise investments on the investors' behalf.

Demerits:

  1. Regulatory Risk: The pharmaceutical industry is vulnerable to a number of regulatory risks, including alterations to governmental policies, restrictions on drug pricing, and intellectual property laws, all of which have the potential to affect the performance of the fund.
  2. Focused portfolio: Because the fund solely invests in the pharmaceutical and healthcare industries, the portfolio is not diversified among different industries.
  3. High Risk: The pharmaceutical and healthcare industries are a high-risk investment option because they are extremely vulnerable to changes in the economy, patent expirations, and regulatory changes.

What type of investor should go for it in India?

  1. Investors with a long-term investment horizon: A Pharma and Healthcare Fund can be advantageous for investors with a long-term investment horizon because the pharmaceutical and healthcare industry is one that is long-term in nature.
  2. Investors seeking diversification: If an investor's portfolio is already well-diversified across other sectors, investing in a Pharma and Healthcare Fund can add additional diversification.
  3. Investors with a strong appetite for risk: Investors that are willing to take on significant risk in exchange for perhaps big returns might consider Pharma and Healthcare Funds.
  4. Investors hoping to profit from healthcare trends: Increasing healthcare spending, an aging population, and an increase in lifestyle diseases are just a few of the factors projected to keep the healthcare sector expanding.

The Indian pharma industry has undergone significant changes in recent years due to various factors such as increasing competition, changing regulations, and the emergence of new technologies. One of the key developments in the industry has been the increasing focus on research and development, with many Indian companies investing heavily in R&D to develop new drugs and therapies.

Additionally, there has been a shift towards specialty drugs and biosimilars, which are expected to provide higher margins and better growth opportunities for Indian pharma companies. The government of India has also taken several initiatives to promote the growth of the pharma industry, such as setting up a dedicated fund for the sector and implementing policies to encourage the development of medical devices and diagnostics.

Overall, the Indian pharma industry is expected to continue growing in the coming years, driven by factors such as increasing demand for healthcare, rising healthcare spending, and the emergence of new technologies. However, challenges such as increasing competition, changing regulations, and the need for continued innovation and investment in R&D will continue to shape the industry's growth and development.

So with Young India growing and medical tourism picking up in India, we are bound to see a tremendous growth in the Healthcare sector and technology will play a crucial role in bringing this development in no-time to the Indian continent and hence business prospects. So invest with a long-term view to reap the benefits and have more patience when it comes to such thematic investing when compared to normal diversified portfolio

For any query please reach out to us at mutualfunds@compositedge.com or simply call us at 98447 00001.
Warm Regards,
Compositedge MF Team.