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Fincash » Mutual Funds India » Pharma Sector Shining in the Midst of Coronavirus

Pharma Sector Shining in the Midst of Coronavirus

Updated on February 5, 2025 , 538 views

Coronavirus has impacted the global Economy, due to which the domestic equity faced a huge decline. Most stocks have been hit low records. The BSE Sensex and NSE Nifty had their worst run since the 2nd week of March. On 18th March, Sensex ended at 28,896 points by falling 1709 points while Nifty failed below 8500 points.

pharma sector in coronavirus

Pharma, the safe haven for Investors

In the midst of the mayhem, the pharma sector looks less affected as it is profiting handsomely. Investors hunting for safe havens in the ongoing turmoil can consider Investing in the pharma sector as it is showing an improving trend in Earnings.

In recent years, the pharmaceutical sector has augmented as the new listing of hospitals and diagnostic companies have been added more to the basket. The government policies and rising Income levels are giving robust growth in this sector.

The pharmaceutical sector was valued at US$33 billion in 2017. In 2018, the Indian pharmaceutical exports stood at US$17.27 billion and reached US$19.14 billion in 2019. The pharmaceutical Industry is anticipated to expand at a CAGR of 22.4% by 2020.

Indian companies received 304 Abbreviated New Drug Application from the US Food and Drug Administration in 2017. The pharma sector will expand and will reach US$55 billion by 2025.

The pharmaceuticals exports bulk drugs, intermediates, drug formulations, biologicals, herbal products and so on. India’s biotechnology industry compromising bio-agriculture, bio-industry, bio-pharmaceuticals and so on is expected to grow at the moderate rate of around 30% a year and it is expected to reach US$ 100 billion in the coming years.

Factors for Investing in Pharma Sector

The pharma sector provides several opportunities for investments and trade due to the following factors:

  • India’s huge population is an excellent centre for clinical trials.
  • India has cost-effective sources for getting a hold for generic drugs, especially the drugs that are going off their patents in the coming years.
  • India has excellent laboratories with world-class facilities. The laboratories specialize in the development of cost-efficient drug Manufacturing technology.
  • The country is self-sufficient for the production of bulk drugs. Almost 70% of the requirements for the formulation of drugs is available in India.
  • The Indian pharmaceutical industry is attracting foreign investors, which is increasing the trade balance in the pharma sector
  • The country is a fast-growing biotech industry, it offers potential in the international Market. Also, it has made the pharma sector an attractive industry to make investments.

Best Pharma Sector Funds to Invest in India 2025

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
SBI Healthcare Opportunities Fund Growth ₹426.614
↓ -0.19
₹3,628-0.412.627.22427.642.2
Nippon India Pharma Fund Growth ₹497.027
↓ -0.66
₹8,915-3.40.21620.225.234
UTI Healthcare Fund Growth ₹278.669
↓ -0.79
₹1,236-3.35.526.320.925.342.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Feb 25

1. SBI Healthcare Opportunities Fund

(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 CAGR/Annualized return of 15.9% since its launch.  Ranked 34 in Sectoral category.  Return for 2024 was 42.2% , 2023 was 38.2% and 2022 was -6% .

Below is the key information for SBI Healthcare Opportunities Fund

SBI Healthcare Opportunities Fund
Growth
Launch Date 31 Dec 04
NAV (06 Feb 25) ₹426.614 ↓ -0.19   (-0.04 %)
Net Assets (Cr) ₹3,628 on 31 Dec 24
Category Equity - Sectoral
AMC SBI Funds Management Private Limited
Rating
Risk High
Expense Ratio 2.09
Sharpe Ratio 2.76
Information Ratio 0.52
Alpha Ratio 4.09
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.

DateValue
31 Jan 20₹10,000
31 Jan 21₹15,535
31 Jan 22₹17,594
31 Jan 23₹17,709
31 Jan 24₹26,160
31 Jan 25₹33,176

SBI Healthcare Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹598,181.
Net Profit of ₹298,181
Invest Now

Returns for SBI Healthcare Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Feb 25

DurationReturns
1 Month -2.4%
3 Month -0.4%
6 Month 12.6%
1 Year 27.2%
3 Year 24%
5 Year 27.6%
10 Year
15 Year
Since launch 15.9%
Historical performance (Yearly) on absolute basis
YearReturns
2023 42.2%
2022 38.2%
2021 -6%
2020 20.1%
2019 65.8%
2018 -0.5%
2017 -9.9%
2016 2.1%
2015 -14%
2014 27.1%
Fund Manager information for SBI Healthcare Opportunities Fund
NameSinceTenure
Tanmaya Desai1 Jun 1113.68 Yr.
Pradeep Kesavan31 Dec 231.09 Yr.

Data below for SBI Healthcare Opportunities Fund as on 31 Dec 24

Equity Sector Allocation
SectorValue
Health Care90.04%
Basic Materials6.53%
Asset Allocation
Asset ClassValue
Cash3.35%
Equity96.57%
Debt0.08%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA
13%₹472 Cr2,500,000
Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | MAXHEALTH
6%₹226 Cr2,000,000
Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB
6%₹220 Cr360,000
Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 500087
6%₹214 Cr1,400,000
↑ 120,000
Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 500257
5%₹188 Cr800,000
Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY
4%₹151 Cr300,000
Mankind Pharma Ltd (Healthcare)
Equity, Since 30 Apr 23 | MANKIND
4%₹151 Cr523,016
↑ 123,016
Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | POLYMED
4%₹131 Cr500,000
Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 30 Nov 22 | 543308
3%₹126 Cr2,100,000
↓ -100,000
Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | JLHL
3%₹125 Cr800,000
↓ -32,871

2. Nippon India Pharma Fund

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 CAGR/Annualized return of 20.8% since its launch.  Ranked 35 in Sectoral category.  Return for 2024 was 34% , 2023 was 39.2% and 2022 was -9.9% .

Below is the key information for Nippon India Pharma Fund

Nippon India Pharma Fund
Growth
Launch Date 5 Jun 04
NAV (07 Feb 25) ₹497.027 ↓ -0.66   (-0.13 %)
Net Assets (Cr) ₹8,915 on 31 Dec 24
Category Equity - Sectoral
AMC Nippon Life Asset Management Ltd.
Rating
Risk High
Expense Ratio 1.88
Sharpe Ratio 2.01
Information Ratio -0.58
Alpha Ratio -3.65
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.

DateValue
31 Jan 20₹10,000
31 Jan 21₹15,604
31 Jan 22₹18,346
31 Jan 23₹17,643
31 Jan 24₹26,687
31 Jan 25₹30,762

Nippon India Pharma Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326
Invest Now

Returns for Nippon India Pharma Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Feb 25

DurationReturns
1 Month -6.2%
3 Month -3.4%
6 Month 0.2%
1 Year 16%
3 Year 20.2%
5 Year 25.2%
10 Year
15 Year
Since launch 20.8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 34%
2022 39.2%
2021 -9.9%
2020 23.9%
2019 66.4%
2018 1.7%
2017 3.6%
2016 7.6%
2015 -10.6%
2014 19.4%
Fund Manager information for Nippon India Pharma Fund
NameSinceTenure
Sailesh Raj Bhan1 Apr 0519.85 Yr.
Kinjal Desai25 May 186.7 Yr.

Data below for Nippon India Pharma Fund as on 31 Dec 24

Equity Sector Allocation
SectorValue
Health Care98.14%
Asset Allocation
Asset ClassValue
Cash1.86%
Equity98.14%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA
14%₹1,237 Cr6,556,349
Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB
9%₹824 Cr1,350,808
Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 500257
8%₹755 Cr3,203,676
Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY
6%₹508 Cr3,662,170
Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 500087
5%₹474 Cr3,100,000
Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP
5%₹473 Cr648,795
Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 543350
4%₹320 Cr3,025,298
Medplus Health Services Ltd (Healthcare)
Equity, Since 30 Nov 22 | 543427
3%₹296 Cr3,564,680
Ajanta Pharma Ltd (Healthcare)
Equity, Since 30 Apr 22 | 532331
3%₹281 Cr959,323
Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND
3%₹267 Cr1,500,000

3. UTI Healthcare Fund

(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 CAGR/Annualized return of 15.1% since its launch.  Ranked 40 in Sectoral category.  Return for 2024 was 42.9% , 2023 was 38.2% and 2022 was -12.3% .

Below is the key information for UTI Healthcare Fund

UTI Healthcare Fund
Growth
Launch Date 28 Jun 99
NAV (07 Feb 25) ₹278.669 ↓ -0.79   (-0.28 %)
Net Assets (Cr) ₹1,236 on 31 Dec 24
Category Equity - Sectoral
AMC UTI Asset Management Company Ltd
Rating
Risk High
Expense Ratio 2.38
Sharpe Ratio 2.32
Information Ratio -0.22
Alpha Ratio -0.45
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.

DateValue
31 Jan 20₹10,000
31 Jan 21₹15,455
31 Jan 22₹17,925
31 Jan 23₹16,531
31 Jan 24₹24,618
31 Jan 25₹30,793

UTI Healthcare Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326
Invest Now

Returns for UTI Healthcare Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Feb 25

DurationReturns
1 Month -5.4%
3 Month -3.3%
6 Month 5.5%
1 Year 26.3%
3 Year 20.9%
5 Year 25.3%
10 Year
15 Year
Since launch 15.1%
Historical performance (Yearly) on absolute basis
YearReturns
2023 42.9%
2022 38.2%
2021 -12.3%
2020 19.1%
2019 67.4%
2018 1.2%
2017 -7.5%
2016 6.2%
2015 -9.7%
2014 12.4%
Fund Manager information for UTI Healthcare Fund
NameSinceTenure
Kamal Gada2 May 222.76 Yr.

Data below for UTI Healthcare Fund as on 31 Dec 24

Equity Sector Allocation
SectorValue
Health Care96.03%
Basic Materials1.27%
Financial Services0.29%
Asset Allocation
Asset ClassValue
Cash2.41%
Equity97.59%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 06 | SUNPHARMA
11%₹137 Cr725,000
Cipla Ltd (Healthcare)
Equity, Since 31 Jan 03 | 500087
6%₹71 Cr464,949
↑ 14,289
Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 28 Feb 18 | DRREDDY
5%₹65 Cr470,234
Ajanta Pharma Ltd (Healthcare)
Equity, Since 31 Jul 17 | 532331
5%₹57 Cr193,047
Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Mar 24 | 532296
4%₹50 Cr309,311
Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND
4%₹47 Cr266,306
Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Apr 21 | APOLLOHOSP
4%₹44 Cr60,000
Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Dec 20 | 532843
3%₹40 Cr557,701
↓ -53,957
Procter & Gamble Health Ltd (Healthcare)
Equity, Since 31 Dec 20 | PGHL
3%₹39 Cr74,000
Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 17 | DIVISLAB
3%₹37 Cr61,480

Conclusion

Medical spending in India has projected to grow 9-12 per cent over the next five years. Further, the growth in domestic sales may increase because of coronavirus. To add more, in such a volatile phase, there are a few Mutual Funds that are performing well.

Speedy introduction of generic or new drugs into the market are in focus and it has expected to benefit the Indian Pharmaceutical companies.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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