Nippon India Pharma Fund Vs SBI Healthcare Opportunities Fund

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.

Nippon India Pharma Fund (Formerly Reliance Pharma Fund)

Important Information

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 (Erstwhile SBI Pharma Fund)

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.

Nippon India Pharma Fund Vs SBI Healthcare Opportunities Fund

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.

Basics 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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years