
The pharma sector is often called India’s “sunrise industry” – it not only meets domestic healthcare needs but also supplies medicines to the world. For investors, this sector has delivered resilience during crises (like Covid-19) and continues to show strong long-term growth potential.

That’s where Pharma Mutual Funds come in. These are sectoral funds that invest in pharmaceutical, healthcare, and allied companies, giving you exposure to one of India’s most promising industries.
But are they right for your Portfolio? Let’s explore.
Pharma Mutual Funds are sectoral Equity Funds that invest primarily in companies from:
Since they are sector-specific, they carry higher risk than Diversified Funds, but also offer the chance to capture outsized gains when the sector outperforms.
Here’s why the Indian pharma industry is considered a strong bet:
In short: Pharma funds allow you to benefit from both domestic consumption growth and global demand for cost-effective drugs.
Talk to our investment specialist
Fund Selection Methodology used to find 10 funds
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) TATA India Pharma & Healthcare Fund Growth  ₹31.0926  
 ↑ 0.32 ₹1,309 -0.4 6.1 2.3 22.5 18.3 40.4 Nippon India Pharma Fund Growth  ₹515.922  
 ↑ 3.73 ₹8,357 -3.7 3.9 1.7 21.6 18.5 34 UTI Healthcare Fund Growth  ₹293.307  
 ↑ 1.93 ₹1,119 -1.9 8.6 5.1 24.5 18.2 42.9 SBI Healthcare Opportunities Fund Growth  ₹436.025  
 ↓ -0.91 ₹3,963 -0.9 3.2 5 25.2 19.9 42.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Oct 25   Research Highlights & Commentary of 4 Funds showcased
Commentary TATA India Pharma & Healthcare Fund Nippon India Pharma Fund UTI Healthcare Fund SBI Healthcare Opportunities Fund Point 1 Lower mid AUM (₹1,309 Cr). Highest AUM (₹8,357 Cr). Bottom quartile AUM (₹1,119 Cr). Upper mid AUM (₹3,963 Cr). Point 2 Established history (9+ yrs). Established history (21+ yrs). Oldest track record among peers (26 yrs). Established history (20+ yrs). Point 3 Not Rated. Top rated. Rating: 1★ (lower mid). Rating: 2★ (upper mid). Point 4 Risk profile: High. Risk profile: High. Risk profile: High. Risk profile: High. Point 5 5Y return: 18.28% (lower mid). 5Y return: 18.49% (upper mid). 5Y return: 18.16% (bottom quartile). 5Y return: 19.86% (top quartile). Point 6 3Y return: 22.47% (lower mid). 3Y return: 21.64% (bottom quartile). 3Y return: 24.48% (upper mid). 3Y return: 25.20% (top quartile). Point 7 1Y return: 2.34% (lower mid). 1Y return: 1.70% (bottom quartile). 1Y return: 5.13% (top quartile). 1Y return: 4.98% (upper mid). Point 8 Alpha: 3.78 (top quartile). Alpha: -4.31 (bottom quartile). Alpha: 0.79 (lower mid). Alpha: 2.04 (upper mid). Point 9 Sharpe: -0.39 (lower mid). Sharpe: -0.47 (bottom quartile). Sharpe: -0.15 (upper mid). Sharpe: -0.05 (top quartile). Point 10 Information ratio: 0.78 (top quartile). Information ratio: -0.53 (bottom quartile). Information ratio: 0.10 (lower mid). Information ratio: 0.38 (upper mid). TATA India Pharma & Healthcare Fund
Nippon India Pharma Fund
UTI Healthcare Fund
SBI Healthcare Opportunities Fund
All the funds mentioned above are ideal, we are giving you detailed analysis of 3 funds.
 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.   Research Highlights for TATA India Pharma & Healthcare Fund   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.   Research Highlights for Nippon India Pharma Fund   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.   Research Highlights for UTI Healthcare Fund   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.   Research Highlights for SBI Healthcare Opportunities Fund   Below is the key information for SBI Healthcare Opportunities Fund   Returns up to 1 year are on 1. TATA India Pharma & Healthcare Fund
TATA India Pharma & Healthcare Fund 
 Growth Launch Date   28 Dec 15  NAV (29 Oct 25)   ₹31.0926  ↑ 0.32   (1.04 %)  Net Assets (Cr)   ₹1,309 on 31 Aug 25  Category  Equity - Sectoral AMC   Tata Asset Management Limited  Rating  Risk  High Expense Ratio  2.17 Sharpe Ratio  -0.39 Information Ratio  0.78 Alpha Ratio  3.78 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 20 ₹10,000 30 Sep 21 ₹13,118 30 Sep 22 ₹12,243 30 Sep 23 ₹14,936 30 Sep 24 ₹22,907 30 Sep 25 ₹22,051  Returns for TATA India Pharma & Healthcare Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  3.7%  3 Month  -0.4%  6 Month  6.1%  1 Year  2.3%  3 Year  22.5%  5 Year  18.3%  10 Year    15 Year    Since launch  12.2%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  40.4%  2023  36.6%  2022  -8%  2021  19.1%  2020  64.4%  2019  5.5%  2018  -2.6%  2017  4.7%  2016  -14.7%  2015     Fund Manager information for TATA India Pharma & Healthcare Fund 
Name Since Tenure Rajat Srivastava 16 Sep 24 1.04 Yr. Data below for TATA India Pharma & Healthcare Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Health Care 94.07% Basic Materials 2.64% Financial Services 1.58%  Asset Allocation 
Asset Class Value Cash 1.72% Equity 98.28%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Sun Pharmaceuticals Industries Ltd (Healthcare) 
Equity, Since 31 Jan 16 | SUNPHARMA10% ₹130 Cr 815,483  Apollo Hospitals Enterprise Ltd (Healthcare) 
Equity, Since 31 Dec 16 | APOLLOHOSP5% ₹66 Cr 88,528  Lupin Ltd (Healthcare) 
Equity, Since 30 Nov 17 | 5002575% ₹63 Cr 330,887  Cipla Ltd (Healthcare) 
Equity, Since 30 Apr 20 | 5000875% ₹63 Cr 418,868 
 ↓ -151,035  Torrent Pharmaceuticals Ltd (Healthcare) 
Equity, Since 31 Aug 22 | TORNTPHARM5% ₹61 Cr 168,394  HealthCare Global Enterprises Ltd (Healthcare) 
Equity, Since 31 Dec 18 | HCG5% ₹61 Cr 942,453  Aster DM Healthcare Ltd Ordinary Shares (Healthcare) 
Equity, Since 31 Dec 22 | ASTERDM5% ₹60 Cr 956,991  Alkem Laboratories Ltd (Healthcare) 
Equity, Since 31 Aug 20 | ALKEM4% ₹58 Cr 106,435  Max Healthcare Institute Ltd Ordinary Shares (Healthcare) 
Equity, Since 31 Jul 25 | MAXHEALTH4% ₹51 Cr 458,724  Divi's Laboratories Ltd (Healthcare) 
Equity, Since 30 Sep 17 | DIVISLAB4% ₹50 Cr 87,918 
 ↑ 4,603 2. Nippon India Pharma Fund
Nippon India Pharma Fund 
 Growth Launch Date   5 Jun 04  NAV (29 Oct 25)   ₹515.922  ↑ 3.73   (0.73 %)  Net Assets (Cr)   ₹8,357 on 31 Aug 25  Category  Equity - Sectoral AMC   Nippon Life Asset Management Ltd.  Rating  ☆☆ Risk  High Expense Ratio  1.81 Sharpe Ratio  -0.48 Information Ratio  -0.53 Alpha Ratio  -4.31 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 20 ₹10,000 30 Sep 21 ₹13,642 30 Sep 22 ₹12,514 30 Sep 23 ₹15,630 30 Sep 24 ₹23,190 30 Sep 25 ₹21,997  Returns for Nippon India Pharma Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  3.7%  3 Month  -3.7%  6 Month  3.9%  1 Year  1.7%  3 Year  21.6%  5 Year  18.5%  10 Year    15 Year    Since launch  20.2%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  34%  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%   Fund Manager information for Nippon India Pharma Fund 
Name Since Tenure Sailesh Raj Bhan 1 Apr 05 20.51 Yr. Kinjal Desai 25 May 18 7.36 Yr. Data below for Nippon India Pharma Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Health Care 99.47%  Asset Allocation 
Asset Class Value Cash 0.53% Equity 99.47%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Sun Pharmaceuticals Industries Ltd (Healthcare) 
Equity, Since 31 Oct 09 | SUNPHARMA12% ₹997 Cr 6,256,349  Lupin Ltd (Healthcare) 
Equity, Since 31 Aug 08 | 5002577% ₹589 Cr 3,083,991 
 ↑ 400,000  Divi's Laboratories Ltd (Healthcare) 
Equity, Since 31 Mar 12 | DIVISLAB7% ₹569 Cr 1,000,031  Cipla Ltd (Healthcare) 
Equity, Since 31 May 08 | 5000876% ₹525 Cr 3,495,054 
 ↑ 295,054  Apollo Hospitals Enterprise Ltd (Healthcare) 
Equity, Since 30 Sep 20 | APOLLOHOSP6% ₹481 Cr 648,795  Dr Reddy's Laboratories Ltd (Healthcare) 
Equity, Since 30 Jun 11 | 5001246% ₹479 Cr 3,916,074  Vijaya Diagnostic Centre Ltd (Healthcare) 
Equity, Since 30 Sep 21 | 5433504% ₹289 Cr 2,886,684  Medplus Health Services Ltd (Healthcare) 
Equity, Since 30 Nov 22 | 5434273% ₹275 Cr 3,627,277  Gland Pharma Ltd (Healthcare) 
Equity, Since 30 Nov 20 | GLAND3% ₹263 Cr 1,320,549  GlaxoSmithKline Pharmaceuticals Ltd (Healthcare) 
Equity, Since 31 Aug 22 | GLAXO3% ₹243 Cr 913,226 3. UTI Healthcare Fund
UTI Healthcare Fund 
 Growth Launch Date   28 Jun 99  NAV (29 Oct 25)   ₹293.307  ↑ 1.93   (0.66 %)  Net Assets (Cr)   ₹1,119 on 31 Aug 25  Category  Equity - Sectoral AMC   UTI Asset Management Company Ltd  Rating  ☆ Risk  High Expense Ratio  2.26 Sharpe Ratio  -0.15 Information Ratio  0.1 Alpha Ratio  0.79 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 20 ₹10,000 30 Sep 21 ₹13,129 30 Sep 22 ₹11,561 30 Sep 23 ₹14,305 30 Sep 24 ₹22,319 30 Sep 25 ₹21,898  Returns for UTI Healthcare Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  3.1%  3 Month  -1.9%  6 Month  8.6%  1 Year  5.1%  3 Year  24.5%  5 Year  18.2%  10 Year    15 Year    Since launch  14.9%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  42.9%  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%   Fund Manager information for UTI Healthcare Fund 
Name Since Tenure Kamal Gada 2 May 22 3.42 Yr. Data below for UTI Healthcare Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Health Care 97.9% Basic Materials 1.07%  Asset Allocation 
Asset Class Value Cash 1.02% Equity 98.98%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Sun Pharmaceuticals Industries Ltd (Healthcare) 
Equity, Since 31 Oct 06 | SUNPHARMA10% ₹105 Cr 661,016  Ajanta Pharma Ltd (Healthcare) 
Equity, Since 31 Jul 17 | 5323315% ₹60 Cr 250,000 
 ↑ 7,327  Cipla Ltd (Healthcare) 
Equity, Since 31 Jan 03 | 5000875% ₹60 Cr 400,000  Lupin Ltd (Healthcare) 
Equity, Since 28 Feb 25 | 5002575% ₹52 Cr 270,000  Procter & Gamble Health Ltd (Healthcare) 
Equity, Since 31 Dec 20 | PGHL4% ₹44 Cr 69,320 
 ↓ -719  Glenmark Pharmaceuticals Ltd (Healthcare) 
Equity, Since 31 Mar 24 | 5322964% ₹41 Cr 210,000 
 ↓ -10,000  Dr Reddy's Laboratories Ltd (Healthcare) 
Equity, Since 28 Feb 18 | 5001244% ₹41 Cr 335,000 
 ↓ -25,000  Gland Pharma Ltd (Healthcare) 
Equity, Since 30 Nov 20 | GLAND4% ₹40 Cr 199,297  Apollo Hospitals Enterprise Ltd (Healthcare) 
Equity, Since 30 Apr 21 | APOLLOHOSP4% ₹39 Cr 53,000  Alkem Laboratories Ltd (Healthcare) 
Equity, Since 31 May 21 | ALKEM4% ₹39 Cr 72,000 4. SBI Healthcare Opportunities Fund
SBI Healthcare Opportunities Fund 
 Growth Launch Date   31 Dec 04  NAV (28 Oct 25)   ₹436.025  ↓ -0.91   (-0.21 %)  Net Assets (Cr)   ₹3,963 on 31 Aug 25  Category  Equity - Sectoral AMC   SBI Funds Management Private Limited  Rating  ☆☆ Risk  High Expense Ratio  1.97 Sharpe Ratio  -0.05 Information Ratio  0.38 Alpha Ratio  2.04 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 20 ₹10,000 30 Sep 21 ₹13,138 30 Sep 22 ₹12,251 30 Sep 23 ₹15,800 30 Sep 24 ₹23,614 30 Sep 25 ₹23,646  Returns for SBI Healthcare Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Oct 25 Duration Returns 1 Month  3.9%  3 Month  -0.9%  6 Month  3.2%  1 Year  5%  3 Year  25.2%  5 Year  19.9%  10 Year    15 Year    Since launch  15.4%   Historical performance (Yearly) on absolute basis 
Year Returns 2024  42.2%  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%   Fund Manager information for SBI Healthcare Opportunities Fund 
Name Since Tenure Tanmaya Desai 1 Jun 11 14.35 Yr. Data below for SBI Healthcare Opportunities Fund as on 31 Aug 25 
 Equity Sector Allocation 
Sector Value Health Care 90.67% Basic Materials 5.69%  Asset Allocation 
Asset Class Value Cash 3.64% Equity 96.36%  Top Securities Holdings / Portfolio 
Name Holding Value Quantity  Sun Pharmaceuticals Industries Ltd (Healthcare) 
Equity, Since 31 Dec 17 | SUNPHARMA11% ₹430 Cr 2,700,000  Divi's Laboratories Ltd (Healthcare) 
Equity, Since 31 Mar 12 | DIVISLAB6% ₹250 Cr 440,000  Max Healthcare Institute Ltd Ordinary Shares (Healthcare) 
Equity, Since 31 Mar 21 | MAXHEALTH6% ₹223 Cr 2,000,000 
 ↓ -100,000  Cipla Ltd (Healthcare) 
Equity, Since 31 Aug 16 | 5000875% ₹180 Cr 1,200,000  Lupin Ltd (Healthcare) 
Equity, Since 31 Aug 23 | 5002574% ₹161 Cr 840,000  Lonza Group Ltd ADR (Healthcare) 
Equity, Since 31 Jan 24 | LZAGY4% ₹160 Cr 270,000  Fortis Healthcare Ltd (Healthcare) 
Equity, Since 30 Apr 21 | 5328434% ₹145 Cr 1,500,000  Torrent Pharmaceuticals Ltd (Healthcare) 
Equity, Since 30 Jun 21 | TORNTPHARM4% ₹144 Cr 400,000  Gland Pharma Ltd (Healthcare) 
Equity, Since 30 Nov 20 | GLAND4% ₹139 Cr 700,000  Mankind Pharma Ltd (Healthcare) 
Equity, Since 30 Apr 23 | MANKIND3% ₹132 Cr 540,000 
 ↓ -20,000 
Pharma Mutual Funds generally track or take cues from the Nifty Pharma Index.
Key Highlights:
To more about index can be read on official website Nifty Pharma Index Document
Pharma funds are not for everyone. They are suitable if you are:
Not suitable for:
Here’s what most articles miss, but you should keep in mind:
Globally, populations are ageing, particularly in developed countries. Indian companies are well-placed to serve this demand.
Pharma is no longer just about medicines. Healthcare funds now capture hospitals, diagnostics, and preventive care businesses – expanding growth scope.
One USFDA ban can wipe out a stock’s value overnight. That’s why pharma funds spread risk across multiple companies.
The pandemic proved how pharma can outperform when healthcare demand spikes – but it also showed the need to stay cautious about hype-driven rallies.
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India’s healthcare system is unique — while public hospitals account for only 30% of total hospital beds, the rest come from the private sector. This means the majority of patients depend on private care, which directly drives higher demand for medicines, diagnostics, and health insurance.
For pharma investors, this is critical. Unlike other industries, demand here is not cyclical — healthcare is a necessity. The more patients turn to private care, the more they rely on affordable medicines, making pharmaceutical companies long-term revenue generators.
The imbalance also highlights another important point: out-of-pocket expenditure in India is one of the highest in the world, around 48–50% of total healthcare spend. This forces households to prioritise low-cost drugs, generic medicines, and insurance-backed treatments — exactly the segments where Indian pharma companies have a competitive advantage.
Add to this the rise of medical tourism (expected to reach $13 billion+ by 2026), demand for speciality care in tier-2 cities, and a growing middle class that spends more on preventive healthcare. All of these trends ensure steady tailwinds for pharma companies and, by extension, pharma mutual funds.
This trend explains why pharma mutual funds are seen as a defensive bet — they combine healthcare demand certainty with the growth potential of India’s expanding private medical sector. In other words, the gap between public and private healthcare isn’t just a social challenge — it’s an investment signal, and one that smart investors can capture through pharma-focused fund.
Pharma Mutual Funds give investors a chance to tap into one of India’s strongest industries – with global leadership in generics, a growing domestic market, and government support. However, these are high-risk, high-reward funds. Don’t allocate more than 10–15% of your portfolio to sectoral funds, and always combine them with diversified mutual funds for stability.
If you believe in the long-term growth of healthcare and India’s role as the “Pharmacy of the World,” pharma funds can be a smart addition to your portfolio.
A: Yes, since they are concentrated sector funds. Suitable only for those who can take high risk.
A: Diversified funds spread risk across sectors, pharma funds focus only on one. They can outperform in pharma bull runs but underperform otherwise.
A: At least 5 years. Short-term Investing in sector funds is not recommended.
A: Yes, SIPs help average out volatility in sectoral funds.
Please send list of funds which has the option of changing the sector of funds so that overall performance of mutual funds are always very good. Thanks and Regards
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