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Pharma Mutual Funds are sector-specific fund that invests in different pharmaceutical companies.
Due to the huge population of India, there has always been a high demand for medicines and other health care needs because of which pharma companies have been earning good profits. Read this entire article to know the Indian Pharma sector, it's growth and the best Pharma mutual funds to Invest.
The pharmaceutical sector in India is one of the largest in the world and plays a significant role in the country's Economy. The Industry is known for its low-cost generic drug production and is considered as the "pharmacy of the world." The sector is highly regulated and governed by the Drugs and Cosmetics Act, 1940, and the Drugs and Cosmetics Rules, 1945. India has a large number of domestic pharmaceutical companies, as well as several multinational corporations operating in the country. In recent years, the government of India has taken several initiatives to support the growth of the pharmaceutical sector, including tax incentives and investment in research and development.
India has an established domestic pharmaceutical industry, with a strong network of 3,000 drug companies and about 10,500 Manufacturing units. The industry has been growing rapidly in recent years and has been making significant contributions to the country's economy through exports. According to a report by the Pharmaceuticals Export Promotion Council of India (Pharmexcil), the pharmaceutical exports from India reached around $19 billion in 2020, with the major export markets being the US, Europe, Africa, and Asia.
Largest pharmaceutical companies in India by Market capitalization (as of August 2021) are — Sun Pharmaceutical, Cipla, Lupin, Dr. Reddy’s Labs, Aurobindo Pharma, Divi's Laboratories, Torrent Pharmaceuticals, Glenmark Pharmaceuticals, etc.
If you are keen to invest in the pharma sector fund, the following are the schemes listed for you.
Pharma funds belong to the equity sectoral fund category which mainly invests in pharma and pharma related stocks. They focus to create a long-term wealth for the investors by taking advantage of growth in the Pharmaceutical sector. In India, some of the top performing funds are - Nippon India Pharma Fund, TATA India Pharma & Healthcare Fund, UTI Healthcare Fund and SBI Healthcare Opportunities Fund.
Nippon India Pharma Fund is in the market since 2004 and has delivered 21.12% returns since inception, whereas UTI Healthcare Fund was launched in 2005 and delivered returns of 18.42% since inception.
SBI Healthcare Opportunities Fund is one of the oldest pharma fund, launched in the year 1999 and has delivered 15.59% returns since its launch.
The category average of pharma funds stood at 131.79%
over 1 year period ended 5 March 2010. Three out of four funds have outpaced BSE Healthcare over the same time period. The Reliance India Pharma Fund has topped the category over one year period. The category average has been 19.77%
and 18.81%
during three years and five years time period.
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The investment objective of the scheme is to seek long term capital appreciation by investing atleast 80% of its net assets in equity/equity related instruments of the companies in the pharma & healthcare sectors in India.However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.The Scheme does not assure or guarantee any returns. TATA India Pharma & Healthcare Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has given a Below is the key information for TATA India Pharma & Healthcare Fund Returns up to 1 year are on The primary investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity related or fixed income securities of Pharma and other associated companies. Nippon India Pharma Fund is a Equity - Sectoral fund was launched on 5 Jun 04. It is a fund with High risk and has given a Below is the key information for Nippon India Pharma Fund Returns up to 1 year are on (Erstwhile UTI Pharma & Healthcare Fund) The Investment objective of the Scheme is capital appreciation through investments in equities and equity related instruments of the Pharma & Healthcare sectors. UTI Healthcare Fund is a Equity - Sectoral fund was launched on 28 Jun 99. It is a fund with High risk and has given a Below is the key information for UTI Healthcare Fund Returns up to 1 year are on (Erstwhile SBI Pharma Fund) To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. SBI Healthcare Opportunities Fund is a Equity - Sectoral fund was launched on 31 Dec 04. It is a fund with High risk and has given a Below is the key information for SBI Healthcare Opportunities Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) TATA India Pharma & Healthcare Fund Growth ₹31.3492
↑ 0.25 ₹1,183 14.7 23.3 56.2 20.6 29.4 36.6 Nippon India Pharma Fund Growth ₹527.065
↑ 4.52 ₹8,648 14.2 22.2 51.1 19.4 30.6 39.2 UTI Healthcare Fund Growth ₹289.796
↑ 0.83 ₹1,168 17.5 28.7 57.7 19.2 30.6 38.2 SBI Healthcare Opportunities Fund Growth ₹419.615
↓ -4.62 ₹3,203 13.6 20 51.9 21.8 31.5 38.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Oct 24 1. TATA India Pharma & Healthcare Fund
CAGR/Annualized
return of 13.9% since its launch. Return for 2023 was 36.6% , 2022 was -8% and 2021 was 19.1% . TATA India Pharma & Healthcare Fund
Growth Launch Date 28 Dec 15 NAV (11 Oct 24) ₹31.3492 ↑ 0.25 (0.80 %) Net Assets (Cr) ₹1,183 on 31 Aug 24 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 0 Sharpe Ratio 2.52 Information Ratio 0.22 Alpha Ratio 2.69 Min Investment 5,000 Min SIP Investment 150 Exit Load 0-3 Months (0.25%),3 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹15,426 30 Sep 21 ₹20,236 30 Sep 22 ₹18,886 30 Sep 23 ₹23,040 30 Sep 24 ₹35,336 Returns for TATA India Pharma & Healthcare Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Oct 24 Duration Returns 1 Month 0.9% 3 Month 14.7% 6 Month 23.3% 1 Year 56.2% 3 Year 20.6% 5 Year 29.4% 10 Year 15 Year Since launch 13.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 36.6% 2022 -8% 2021 19.1% 2020 64.4% 2019 5.5% 2018 -2.6% 2017 4.7% 2016 -14.7% 2015 2014 Fund Manager information for TATA India Pharma & Healthcare Fund
Name Since Tenure Meeta Shetty 9 Mar 21 3.48 Yr. Data below for TATA India Pharma & Healthcare Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 90.64% Basic Materials 1.92% Asset Allocation
Asset Class Value Cash 6.87% Equity 93.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Jan 16 | SUNPHARMA12% ₹147 Cr 804,300 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 30 Apr 20 | AUROPHARMA10% ₹116 Cr 741,000 Lupin Ltd (Healthcare)
Equity, Since 30 Nov 17 | 5002578% ₹92 Cr 410,240
↓ -100,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 31 Aug 18 | DRREDDY7% ₹86 Cr 122,911
↑ 15,268 Cipla Ltd (Healthcare)
Equity, Since 30 Apr 20 | 5000877% ₹81 Cr 490,000
↑ 75,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 17 | DIVISLAB5% ₹53 Cr 104,965 Zydus Lifesciences Ltd (Healthcare)
Equity, Since 31 Dec 22 | 5323214% ₹53 Cr 471,287 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Oct 20 | 5328434% ₹47 Cr 855,100 Alkem Laboratories Ltd (Healthcare)
Equity, Since 31 Aug 20 | 5395234% ₹46 Cr 75,249 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Dec 16 | APOLLOHOSP3% ₹41 Cr 58,903 2. Nippon India Pharma Fund
CAGR/Annualized
return of 21.5% since its launch. Ranked 35 in Sectoral
category. Return for 2023 was 39.2% , 2022 was -9.9% and 2021 was 23.9% . Nippon India Pharma Fund
Growth Launch Date 5 Jun 04 NAV (11 Oct 24) ₹527.065 ↑ 4.52 (0.87 %) Net Assets (Cr) ₹8,648 on 31 Aug 24 Category Equity - Sectoral AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk High Expense Ratio 1.88 Sharpe Ratio 2.45 Information Ratio -0.08 Alpha Ratio 1.11 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,072 30 Sep 21 ₹21,926 30 Sep 22 ₹20,112 30 Sep 23 ₹25,121 30 Sep 24 ₹37,270 Returns for Nippon India Pharma Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Oct 24 Duration Returns 1 Month 0.9% 3 Month 14.2% 6 Month 22.2% 1 Year 51.1% 3 Year 19.4% 5 Year 30.6% 10 Year 15 Year Since launch 21.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 39.2% 2022 -9.9% 2021 23.9% 2020 66.4% 2019 1.7% 2018 3.6% 2017 7.6% 2016 -10.6% 2015 19.4% 2014 49.5% Fund Manager information for Nippon India Pharma Fund
Name Since Tenure Sailesh Raj Bhan 1 Apr 05 19.43 Yr. Kinjal Desai 25 May 18 6.27 Yr. Data below for Nippon India Pharma Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 96.47% Asset Allocation
Asset Class Value Cash 2.6% Equity 97.4% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA14% ₹1,194 Cr 6,556,349 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 5002578% ₹718 Cr 3,203,676 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB8% ₹688 Cr 1,350,808 Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 5000876% ₹513 Cr 3,100,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY6% ₹492 Cr 700,030 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP5% ₹449 Cr 648,795 Ajanta Pharma Ltd (Healthcare)
Equity, Since 30 Apr 22 | AJANTPHARM4% ₹311 Cr 959,323 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 5433503% ₹276 Cr 3,027,149 Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND3% ₹276 Cr 1,500,000 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 31 Dec 15 | AUROPHARMA3% ₹267 Cr 1,702,630
↓ -98,170 3. UTI Healthcare Fund
CAGR/Annualized
return of 15.5% since its launch. Ranked 40 in Sectoral
category. Return for 2023 was 38.2% , 2022 was -12.3% and 2021 was 19.1% . UTI Healthcare Fund
Growth Launch Date 28 Jun 99 NAV (11 Oct 24) ₹289.796 ↑ 0.83 (0.29 %) Net Assets (Cr) ₹1,168 on 31 Aug 24 Category Equity - Sectoral AMC UTI Asset Management Company Ltd Rating ☆ Risk High Expense Ratio 2.38 Sharpe Ratio 2.49 Information Ratio -0.01 Alpha Ratio 1.29 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,648 30 Sep 21 ₹21,858 30 Sep 22 ₹19,247 30 Sep 23 ₹23,816 30 Sep 24 ₹37,158 Returns for UTI Healthcare Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Oct 24 Duration Returns 1 Month 0.8% 3 Month 17.5% 6 Month 28.7% 1 Year 57.7% 3 Year 19.2% 5 Year 30.6% 10 Year 15 Year Since launch 15.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 38.2% 2022 -12.3% 2021 19.1% 2020 67.4% 2019 1.2% 2018 -7.5% 2017 6.2% 2016 -9.7% 2015 12.4% 2014 43.7% Fund Manager information for UTI Healthcare Fund
Name Since Tenure Kamal Gada 2 May 22 2.34 Yr. Data below for UTI Healthcare Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 95.09% Financial Services 1.33% Basic Materials 1.06% Asset Allocation
Asset Class Value Cash 2.41% Equity 97.48% Debt 0.11% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 06 | SUNPHARMA11% ₹134 Cr 735,274 Cipla Ltd (Healthcare)
Equity, Since 31 Jan 03 | 5000877% ₹78 Cr 469,180 Ajanta Pharma Ltd (Healthcare)
Equity, Since 31 Jul 17 | AJANTPHARM6% ₹65 Cr 200,000
↓ -35,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 28 Feb 18 | DRREDDY5% ₹61 Cr 87,100 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Apr 21 | APOLLOHOSP4% ₹45 Cr 64,796 Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Mar 24 | GLENMARK4% ₹43 Cr 250,331 Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Mar 19 | ERIS4% ₹41 Cr 297,746 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 31 Oct 13 | AUROPHARMA3% ₹39 Cr 250,000
↓ -5,167 Procter & Gamble Health Ltd (Healthcare)
Equity, Since 31 Dec 20 | 5001263% ₹39 Cr 74,000 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Dec 20 | 5328433% ₹35 Cr 634,445 4. SBI Healthcare Opportunities Fund
CAGR/Annualized
return of 16.1% since its launch. Ranked 34 in Sectoral
category. Return for 2023 was 38.2% , 2022 was -6% and 2021 was 20.1% . SBI Healthcare Opportunities Fund
Growth Launch Date 31 Dec 04 NAV (10 Oct 24) ₹419.615 ↓ -4.62 (-1.09 %) Net Assets (Cr) ₹3,203 on 31 Aug 24 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆☆ Risk High Expense Ratio 2.09 Sharpe Ratio 2.32 Information Ratio 0.51 Alpha Ratio -0.99 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹16,390 30 Sep 21 ₹21,533 30 Sep 22 ₹20,079 30 Sep 23 ₹25,897 30 Sep 24 ₹38,702 Returns for SBI Healthcare Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Oct 24 Duration Returns 1 Month 0.5% 3 Month 13.6% 6 Month 20% 1 Year 51.9% 3 Year 21.8% 5 Year 31.5% 10 Year 15 Year Since launch 16.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 38.2% 2022 -6% 2021 20.1% 2020 65.8% 2019 -0.5% 2018 -9.9% 2017 2.1% 2016 -14% 2015 27.1% 2014 56.8% Fund Manager information for SBI Healthcare Opportunities Fund
Name Since Tenure Tanmaya Desai 1 Jun 11 13.26 Yr. Pradeep Kesavan 31 Dec 23 0.67 Yr. Data below for SBI Healthcare Opportunities Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Health Care 90.07% Basic Materials 6.15% Asset Allocation
Asset Class Value Cash 3.76% Equity 96.24% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA12% ₹383 Cr 2,100,000
↓ -100,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB6% ₹183 Cr 360,000
↓ -40,000 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5002576% ₹179 Cr 800,000
↑ 132,234 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | 5432205% ₹174 Cr 2,021,773
↓ -78,227 Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 5000875% ₹165 Cr 1,000,000 Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY5% ₹164 Cr 300,000 Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | 5317685% ₹149 Cr 638,297
↑ 638,297 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 30 Nov 22 | 5433084% ₹127 Cr 500,000 Aether Industries Ltd (Basic Materials)
Equity, Since 31 May 22 | 5435344% ₹125 Cr 1,400,000 Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5439804% ₹120 Cr 900,000
↑ 7,119
Generally Pharma Mutual funds follow similar composition of stocks tracking Nifty Pharma Index or CNX Pharma Index as this index is benchmark for Pharma Sector Mutual Funds. Although Pharma Mutual Funds might not necessarily replicate same ratios and components.
Portfolio | Characteristics |
---|---|
Methodology | Periodic Capped Free Float |
Launch Date | July 01, 2005 |
Base Date | Jan 01, 2001 |
Base Value | 1000 |
No. of Constituents | 20 |
Calculation Frequency | Real Time |
Index Rebalancing | Semi-Annually |
Constituents companies of Nifty Pharma Index with weightage
As on Jan, 2023
Stock | Weightage |
---|---|
Sun Pharmaceutical Industries Ltd. | 26.88 |
Cipla Ltd. | 13.25 |
Dr. Reddy's Laboratories Ltd. | 12.65 |
Divi's Laboratories Ltd. | 10.17 |
Lupin Ltd. | 4.28 |
Alkem Laboratories Ltd. | 3.55 |
Torrent Pharmaceuticals Ltd. | 3.35 |
Laurus Labs Ltd. | 3.12 |
Ipca Laboratories Ltd. | 2.80 |
Aurobindo Pharma Ltd. | 2.76 |
To more about index can be read on official website Nifty Pharma Index Document
Being a sector-specific fund, pharma funds carry a huge risk of investment. Investors having an in-depth knowledge of the pharma and healthcare industry are only advised to invest. Also, the ability to bear a high-risk. Investors who think the pharma sector will give good returns in the future or can perform stable in the long-run can invest.
Public healthcare is free for those who are below the poverty line. It encompasses 18% of total outpatient care and 44% of total inpatient care. Middle and upper class individuals tend to use public healthcare less than those with a lower standard of living. Additionally, females and elderly use public services more. The public health care system was originally developed in order to provide a means to healthcare access regardless of socioeconomic status. However, reliance on public and private healthcare sectors varies significantly between states. Several reasons are cited for relying on the private rather than public sector; the main reason at the national level is poor quality of care in the public sector, with more than 57% of households pointing to this as the reason for a preference for private health care.
Most of the public healthcare caters to the rural areas; and the poor quality arises from the reluctance of experienced healthcare providers to visit the rural areas. Consequently, the majority of the public healthcare system catering to the rural and remote areas relies on inexperienced and unmotivated interns who are mandated to spend time in public healthcare clinics as part of their curricular requirement. Other major reasons are distance of the public sector Facility, long wait times, and inconvenient hours of operation.
Different factors related to public healthcare are divided between the state and national government systems in terms of making decisions, as the national government addresses broadly applicable healthcare issues such as overall family welfare and prevention of major diseases, while the state governments Handle aspects such as local hospitals, public health, promotion and sanitation, which differ from state to state based on the particular communities involved. Interaction between the state and national governments does occur for healthcare issues that require larger scale resources or present a concern to the country as a whole.
Since 2005, most of the healthcare capacity added has been in the private sector, or in partnership with the private sector. The private sector consists of 58% of the hospitals in the country, 29% of beds in hospitals, and 81% of doctors. According to National Family Health Survey-3, the private medical sector remains the primary source of health care for 70% of households in urban areas and 63% of households in rural areas. The study conducted by IMS Institute for Healthcare Informatics in 2013, across 12 states in over 14,000 households indicated a steady increase in the usage of private healthcare facilities over the last 25 years for both Out Patient and In Patient services, across rural and urban areas. In terms of healthcare quality in the private sector, a 2012 study by Sanjay Basu et al., published in PLOS Medicine, indicated that health care providers in the private sector were more likely to spend a longer duration with their patients and conduct physical exams as a part of the visit compared to those working in public healthcare.
However, the high out of pocket cost from the private healthcare sector has led many households to incur Catastrophic Health Expenditure, which can be defined as health expenditure that threatens a household's capacity to maintain a basic standard of living. Costs of the private sector are only increasing. One study found that over 35% of poor Indian households incur such expenditure and this reflects the detrimental state in which Indian health care system is at the moment.
With government expenditure on health as a percentage of GDP falling over the years and the rise of private health care sector, the poor are left with fewer options than before to access health care services. Private insurance is available in India, as are various through government-sponsored health insurance schemes. According to the World Bank, about 25% of India's population had some form of health insurance in 2010. 2014 Indian government study found this to be an over-estimate, and claimed that only about 17% of India's population was insured.
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