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Nippon India Pharma Fund (Formerly known as Reliance Pharma Fund) Vs SBI Healthcare Opportunities Fund both the schemes are a part of sectoral Equity Funds. These schemes invest their fund money in equity and equity-related instruments of pharmaceutical and healthcare companies. These companies are into Manufacturing of medicines and other pharmaceutical products. Being sector-related funds, the risk-appetite of these schemes is high. India being a country with large population, the demand for medicines is high. Though both funds belong to the same category yet; both of them differ in various accounts such as performance, AUM, and much more. So, let us compare and understand the differences between Reliance/Nippon India Pharma Fund Vs SBI Healthcare Opportunities Fund.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
This scheme is managed by Nippon Mutual Fund and was incepted on June 05, 2004. This scheme invests its fund money in equity and fixed Income instruments of pharma and associated companies and strives to earn consistent returns thereby. The risk appetite of Reliance/Nippon India Pharma Fund is High. This fund’s Portfolio is a combination of large cap and mid-cap companies. Mr. Shailesh Raj Bhan is the fund manager who overlooks the performance of Nippon India Pharma Fund. As on January 31, 2018, some of the shares that were part of Nippon India Pharma Fund’s portfolio consisted of Thyrocare Technologies Limited, Sun Pharmaceutical Industries Limited, Cipla Limited, and Torrent Pharmaceuticals Limited. It is an open-ended scheme.
SBI Healthcare Opportunities Fund (earlier known as SBI Pharma Fund) is an open-ended that invest in a diversified portfolio of equity and equity related securities in Healthcare space. This scheme is managed by SBI Mutual Fund and was launched in the year 1999. This scheme uses S&P BSE Healthcare Index as its benchmark to construct its portfolio. Its aim is to provide atmost growth opportunities to investors by Investing in an actively managed portfolio predominantly consisting of pharma stocks. SBI Healthcare Opportunities Fund is solely managed by Mr. Tanmaya Desai. The scheme is suitable for investors who are willing to take a high-risk and are confident about the growth aspects in the healthcare sector. As on January 31, 2018, some of the companies that were part of SBI Healthcare Opportunities Fund’s portfolio included DIVI’s Laboratories Limited, Alkem Laboratories Limited, Cadila Healthcare Limited, and Strides Shasun Limited.
Though both the schemes belong to the same sector yet there exist differences between them. So, let us compare and understand the differences between both the schemes based on various parameters that are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
The comparable elements that form part of basics section include Scheme Category, Fincash Rating, and Current NAV. Based on the scheme category, it can be said that both the scheme belong to the same category that is Equity Sectoral. The next element is Fincash Rating as per which both the funds are rated as 2-Star. However, the comparison of Current NAV shows that there is a difference between the two. The NAV of Nippon India Pharma Fund is higher than SBI Healthcare Opportunities Fund. As on March 01, 2018, the NAV of Nippon’s scheme was approximately INR 140 while of SBI’s scheme was approximately INR 123. The summary of basics section is tabulated as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Nippon India Pharma Fund
Growth
Fund Details ₹510.815 ↑ 9.72 (1.94 %) ₹8,689 on 31 Oct 24 5 Jun 04 ☆☆ Equity Sectoral 35 High 1.88 2.63 -0.47 -3.51 Not Available 0-1 Years (1%),1 Years and above(NIL) SBI Healthcare Opportunities Fund
Growth
Fund Details ₹414.863 ↓ -2.13 (-0.51 %) ₹3,416 on 31 Oct 24 31 Dec 04 ☆☆ Equity Sectoral 34 High 2.09 3.45 0.68 6.3 Not Available 0-15 Days (0.5%),15 Days and above(NIL)
The performance section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes at various intervals. Some of these time intervals include 1 Month Return, 3 Month Return, 1 Year Return, and 5 Year Return. Comparison of CAGR returns shows that at most time periods, the returns of Nippon India Pharma Fund are higher than the returns of SBI Healthcare Opportunities Fund. The table given below summarizes the performance comparison of both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Pharma Fund
Growth
Fund Details 0.7% -0.3% 16.8% 36.9% 19% 27.5% 21.2% SBI Healthcare Opportunities Fund
Growth
Fund Details -0.1% 2.4% 21% 43.2% 22.4% 28.2% 15.9%
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Yearly Performance Section compares the absolute returns between both the schemes for a particular year. In this section, for certain years, the performance of SBI Healthcare Opportunities Fund is better than the performance of Reliance/Nippon India Pharma Fund and vice versa. The yearly performance section’s summary is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Nippon India Pharma Fund
Growth
Fund Details 39.2% -9.9% 23.9% 66.4% 1.7% SBI Healthcare Opportunities Fund
Growth
Fund Details 38.2% -6% 20.1% 65.8% -0.5%
It is the last section of comparison between both the schemes. The parameters forming part of this section include AUM, Minimum SIP investment, Minimum Lumpsum Investment, and Exit Load. The comparison of AUM reveals that the Nippon scheme's AUM is more than the SBI’s scheme. As on July 23, 2021, the SBI healthcare opportunity fund was INR 2003.7 Crores and of Nippon India Pharma Fund was ₹ 5446.95 Crores. Moreover, the Minimum SIP Investment is also different for both the schemes. The Minimum SIP Investment for Nippon’s scheme is INR 100 and for SBI’s scheme is INR 500. With respect to the exit load, Nippon India Pharma Fund charges 1% if the Redemption is done within one year from the date of purchase and no charges after one year. SBI Healthcare Opportunities Fund, on the other hand, charges 0.5% if the redemption is done within 15 days from the date of purchase and no load after it. The summary of this section is as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Pharma Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 19.6 Yr. SBI Healthcare Opportunities Fund
Growth
Fund Details ₹500 ₹5,000 Tanmaya Desai - 13.43 Yr.
Nippon India Pharma Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹15,662 30 Nov 21 ₹20,005 30 Nov 22 ₹19,266 30 Nov 23 ₹24,890 30 Nov 24 ₹33,663 SBI Healthcare Opportunities Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹15,482 30 Nov 21 ₹18,848 30 Nov 22 ₹19,211 30 Nov 23 ₹24,570 30 Nov 24 ₹35,381
Nippon India Pharma Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.43% Equity 95.57% Equity Sector Allocation
Sector Value Health Care 95.57% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA14% ₹1,212 Cr 6,556,349 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB9% ₹796 Cr 1,350,808 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 5002578% ₹701 Cr 3,203,676 Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 5000876% ₹481 Cr 3,100,000 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP5% ₹456 Cr 648,795 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY5% ₹446 Cr 3,500,150 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 5433503% ₹302 Cr 3,027,149 Ajanta Pharma Ltd (Healthcare)
Equity, Since 30 Apr 22 | 5323313% ₹294 Cr 959,323 J.B. Chemicals & Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Jan 22 | JBCHEPHARM3% ₹251 Cr 1,278,814 Abbott India Ltd (Healthcare)
Equity, Since 31 May 11 | ABBOTINDIA3% ₹250 Cr 86,390 SBI Healthcare Opportunities Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.26% Equity 96.74% Equity Sector Allocation
Sector Value Health Care 90.2% Basic Materials 6.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA13% ₹444 Cr 2,400,000
↑ 200,000 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | MAXHEALTH6% ₹214 Cr 2,100,000
↑ 100,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB6% ₹212 Cr 360,000 Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | POLYMED5% ₹184 Cr 640,000 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5002575% ₹175 Cr 800,000 Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY5% ₹156 Cr 300,000 Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 5000875% ₹155 Cr 1,000,000 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 30 Nov 22 | 5433084% ₹136 Cr 2,500,000 Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | JLHL4% ₹121 Cr 900,000 Mankind Pharma Ltd (Healthcare)
Equity, Since 30 Apr 23 | MANKIND4% ₹120 Cr 450,000
Thus, from the above parameters, it can be said that there are a lot of differences between both the schemes. However, individuals should be careful while investing in any of the schemes. they should understand the scheme’s modalities thoroughly and check whether it matches with their objectives or not. People, if required, can also consult a financial advisor. This will help them to ensure that their investment reaps them the required results.
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