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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 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 (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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) TATA India Pharma & Healthcare Fund Growth ₹28.0161
↓ -0.89 ₹1,104 -11.9 -9.1 10.6 17.4 25.1 40.4 Nippon India Pharma Fund Growth ₹468.829
↓ -15.57 ₹7,637 -11.1 -9.3 8.8 16.7 26.2 34 SBI Healthcare Opportunities Fund Growth ₹412.667
↑ 7.64 ₹3,313 -6.3 -1 19.2 23.1 29 42.2 UTI Healthcare Fund Growth ₹260.596
↓ -9.15 ₹1,057 -11.2 -9.2 16 17.9 26.1 42.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Apr 25 1. TATA India Pharma & Healthcare Fund
CAGR/Annualized
return of 11.8% since its launch. Return for 2024 was 40.4% , 2023 was 36.6% and 2022 was -8% . TATA India Pharma & Healthcare Fund
Growth Launch Date 28 Dec 15 NAV (04 Apr 25) ₹28.0161 ↓ -0.89 (-3.10 %) Net Assets (Cr) ₹1,104 on 28 Feb 25 Category Equity - Sectoral AMC Tata Asset Management Limited Rating Risk High Expense Ratio 0 Sharpe Ratio 0.04 Information Ratio 0.42 Alpha Ratio 0.96 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 31 Mar 20 ₹10,000 31 Mar 21 ₹16,489 31 Mar 22 ₹19,237 31 Mar 23 ₹17,775 31 Mar 24 ₹28,060 31 Mar 25 ₹32,066 Returns for TATA India Pharma & Healthcare Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Apr 25 Duration Returns 1 Month 4.6% 3 Month -11.9% 6 Month -9.1% 1 Year 10.6% 3 Year 17.4% 5 Year 25.1% 10 Year 15 Year Since launch 11.8% 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 Meeta Shetty 9 Mar 21 4.06 Yr. Rajat Srivastava 16 Sep 24 0.54 Yr. Data below for TATA India Pharma & Healthcare Fund as on 28 Feb 25
Equity Sector Allocation
Sector Value Health Care 95.87% Basic Materials 2.19% Asset Allocation
Asset Class Value Cash 1.94% Equity 98.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Jan 16 | SUNPHARMA12% ₹128 Cr 804,300 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 31 Aug 18 | DRREDDY7% ₹80 Cr 714,555 Aurobindo Pharma Ltd (Healthcare)
Equity, Since 30 Apr 20 | AUROPHARMA7% ₹78 Cr 741,000 Cipla Ltd (Healthcare)
Equity, Since 30 Apr 20 | 5000876% ₹69 Cr 490,000 Lupin Ltd (Healthcare)
Equity, Since 30 Nov 17 | 5002576% ₹69 Cr 360,240 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 17 | DIVISLAB5% ₹58 Cr 104,965 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Oct 20 | 5328435% ₹52 Cr 855,100 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Dec 16 | APOLLOHOSP4% ₹44 Cr 72,635
↑ 13,732 Zydus Lifesciences Ltd (Healthcare)
Equity, Since 31 Dec 22 | 5323214% ₹41 Cr 471,287 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Dec 22 | ASTERDM3% ₹37 Cr 906,991
↑ 250,000 2. Nippon India Pharma Fund
CAGR/Annualized
return of 20.3% since its launch. Ranked 35 in Sectoral
category. Return for 2024 was 34% , 2023 was 39.2% and 2022 was -9.9% . Nippon India Pharma Fund
Growth Launch Date 5 Jun 04 NAV (04 Apr 25) ₹468.829 ↓ -15.57 (-3.21 %) Net Assets (Cr) ₹7,637 on 28 Feb 25 Category Equity - Sectoral AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk High Expense Ratio 1.88 Sharpe Ratio -0.03 Information Ratio -0.33 Alpha Ratio -3.9 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 31 Mar 20 ₹10,000 31 Mar 21 ₹17,447 31 Mar 22 ₹20,234 31 Mar 23 ₹18,871 31 Mar 24 ₹29,909 31 Mar 25 ₹33,564 Returns for Nippon India Pharma Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Apr 25 Duration Returns 1 Month 2.5% 3 Month -11.1% 6 Month -9.3% 1 Year 8.8% 3 Year 16.7% 5 Year 26.2% 10 Year 15 Year Since launch 20.3% 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 20.01 Yr. Kinjal Desai 25 May 18 6.86 Yr. Data below for Nippon India Pharma Fund as on 28 Feb 25
Equity Sector Allocation
Sector Value Health Care 98.89% Asset Allocation
Asset Class Value Cash 1.11% Equity 98.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA14% ₹1,045 Cr 6,556,349 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB9% ₹712 Cr 1,298,808
↓ -52,000 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 5002578% ₹590 Cr 3,098,126
↓ -102,567 Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 5000876% ₹450 Cr 3,200,000
↑ 100,000 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY5% ₹409 Cr 3,662,170 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP5% ₹393 Cr 648,795 Abbott India Ltd (Healthcare)
Equity, Since 31 May 11 | ABBOTINDIA4% ₹292 Cr 95,985
↑ 9,595 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 5433503% ₹260 Cr 2,843,231 Medplus Health Services Ltd (Healthcare)
Equity, Since 30 Nov 22 | 5434273% ₹259 Cr 3,627,277
↑ 62,597 GlaxoSmithKline Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Aug 22 | GLAXO3% ₹250 Cr 1,011,921
↑ 179,134 3. SBI Healthcare Opportunities Fund
CAGR/Annualized
return of 15.6% since its launch. Ranked 34 in Sectoral
category. Return for 2024 was 42.2% , 2023 was 38.2% and 2022 was -6% . SBI Healthcare Opportunities Fund
Growth Launch Date 31 Dec 04 NAV (03 Apr 25) ₹412.667 ↑ 7.64 (1.89 %) Net Assets (Cr) ₹3,313 on 28 Feb 25 Category Equity - Sectoral AMC SBI Funds Management Private Limited Rating ☆☆ Risk High Expense Ratio 2.09 Sharpe Ratio 0.35 Information Ratio 0.73 Alpha Ratio 2.13 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 31 Mar 20 ₹10,000 31 Mar 21 ₹17,177 31 Mar 22 ₹19,486 31 Mar 23 ₹19,107 31 Mar 24 ₹30,178 31 Mar 25 ₹36,162 Returns for SBI Healthcare Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Apr 25 Duration Returns 1 Month 7.4% 3 Month -6.3% 6 Month -1% 1 Year 19.2% 3 Year 23.1% 5 Year 29% 10 Year 15 Year Since launch 15.6% 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 13.84 Yr. Data below for SBI Healthcare Opportunities Fund as on 28 Feb 25
Equity Sector Allocation
Sector Value Health Care 90.4% Basic Materials 6.89% Asset Allocation
Asset Class Value Cash 2.62% Equity 97.29% Debt 0.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA13% ₹446 Cr 2,800,000 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | MAXHEALTH6% ₹215 Cr 2,200,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB6% ₹206 Cr 375,000
↓ -15,000 Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 5000875% ₹169 Cr 1,200,000 Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY5% ₹166 Cr 300,000 Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 5002575% ₹160 Cr 840,000 Mankind Pharma Ltd (Healthcare)
Equity, Since 30 Apr 23 | MANKIND4% ₹128 Cr 560,000 Aether Industries Ltd (Basic Materials)
Equity, Since 31 May 22 | 5435344% ₹120 Cr 1,400,000 Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | JLHL3% ₹115 Cr 800,000 Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | POLYMED3% ₹110 Cr 540,000
↑ 40,000 4. UTI Healthcare Fund
CAGR/Annualized
return of 14.7% since its launch. Ranked 40 in Sectoral
category. Return for 2024 was 42.9% , 2023 was 38.2% and 2022 was -12.3% . UTI Healthcare Fund
Growth Launch Date 28 Jun 99 NAV (04 Apr 25) ₹260.596 ↓ -9.15 (-3.39 %) Net Assets (Cr) ₹1,057 on 28 Feb 25 Category Equity - Sectoral AMC UTI Asset Management Company Ltd Rating ☆ Risk High Expense Ratio 2.38 Sharpe Ratio 0.28 Information Ratio -0.09 Alpha Ratio 1.36 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 31 Mar 20 ₹10,000 31 Mar 21 ₹17,396 31 Mar 22 ₹19,596 31 Mar 23 ₹17,899 31 Mar 24 ₹27,884 31 Mar 25 ₹33,479 Returns for UTI Healthcare Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Apr 25 Duration Returns 1 Month 4.3% 3 Month -11.2% 6 Month -9.2% 1 Year 16% 3 Year 17.9% 5 Year 26.1% 10 Year 15 Year Since launch 14.7% 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 2.83 Yr. Data below for UTI Healthcare Fund as on 28 Feb 25
Equity Sector Allocation
Sector Value Health Care 98.22% Basic Materials 1.33% Asset Allocation
Asset Class Value Cash 0.45% Equity 99.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 06 | SUNPHARMA11% ₹116 Cr 725,000 Cipla Ltd (Healthcare)
Equity, Since 31 Jan 03 | 5000876% ₹65 Cr 464,949 Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 28 Feb 18 | DRREDDY5% ₹48 Cr 432,608
↓ -37,626 Ajanta Pharma Ltd (Healthcare)
Equity, Since 31 Jul 17 | 5323314% ₹47 Cr 188,399
↑ 1,601 Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Mar 24 | 5322964% ₹40 Cr 309,311 Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND4% ₹37 Cr 240,012
↓ -465 Procter & Gamble Health Ltd (Healthcare)
Equity, Since 31 Dec 20 | PGHL4% ₹37 Cr 74,000 Suven Pharmaceuticals Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUVENPHAR3% ₹36 Cr 295,000
↑ 2,080 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Dec 20 | 5328433% ₹34 Cr 557,701 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Apr 21 | APOLLOHOSP3% ₹34 Cr 56,271
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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