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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 October 31, 2024 , 517 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 2023

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
SBI Healthcare Opportunities Fund Growth ₹423.835
↑ 6.20
₹3,34610.722.357.524.129.538.2
Nippon India Pharma Fund Growth ₹514.737
↑ 8.07
₹8,7695.220.151.119.828.239.2
UTI Healthcare Fund Growth ₹285.137
↑ 5.26
₹1,2018.927.359.320.528.238.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Oct 24

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 16.1% since its launch.  Ranked 34 in Sectoral category.  Return for 2023 was 38.2% , 2022 was -6% and 2021 was 20.1% .

Below is the key information for SBI Healthcare Opportunities Fund

SBI Healthcare Opportunities Fund
Growth
Launch Date 31 Dec 04
NAV (31 Oct 24) ₹423.835 ↑ 6.20   (1.48 %)
Net Assets (Cr) ₹3,346 on 30 Sep 24
Category Equity - Sectoral
AMC SBI Funds Management Private Limited
Rating
Risk High
Expense Ratio 2.09
Sharpe Ratio 2.5
Information Ratio 0.4
Alpha Ratio 1.15
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 Oct 19₹10,000
31 Oct 20₹15,024
31 Oct 21₹19,094
31 Oct 22₹19,411
31 Oct 23₹23,158
31 Oct 24₹36,478

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 ₹627,226.
Net Profit of ₹327,226
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 31 Oct 24

DurationReturns
1 Month 1%
3 Month 10.7%
6 Month 22.3%
1 Year 57.5%
3 Year 24.1%
5 Year 29.5%
10 Year
15 Year
Since launch 16.1%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 56.8%
Fund Manager information for SBI Healthcare Opportunities Fund
NameSinceTenure
Tanmaya Desai1 Jun 1113.35 Yr.
Pradeep Kesavan31 Dec 230.75 Yr.

Data below for SBI Healthcare Opportunities Fund as on 30 Sep 24

Equity Sector Allocation
SectorValue
Health Care89.61%
Basic Materials6.63%
Asset Allocation
Asset ClassValue
Cash3.76%
Equity96.24%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Dec 17 | SUNPHARMA
13%₹424 Cr2,200,000
↑ 100,000
Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Mar 21 | MAXHEALTH
6%₹197 Cr2,000,000
↓ -21,773
Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB
6%₹196 Cr360,000
Lupin Ltd (Healthcare)
Equity, Since 31 Aug 23 | 500257
5%₹175 Cr800,000
Cipla Ltd (Healthcare)
Equity, Since 31 Aug 16 | 500087
5%₹165 Cr1,000,000
Lonza Group Ltd ADR (Healthcare)
Equity, Since 31 Jan 24 | LZAGY
5%₹159 Cr300,000
Poly Medicure Ltd (Healthcare)
Equity, Since 31 Aug 24 | POLYMED
4%₹148 Cr640,000
↑ 1,703
Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 30 Nov 22 | 543308
4%₹139 Cr2,500,000
Aether Industries Ltd (Basic Materials)
Equity, Since 31 May 22 | 543534
4%₹130 Cr1,400,000
Jupiter Life Line Hospitals Ltd (Healthcare)
Equity, Since 31 Aug 23 | JLHL
4%₹127 Cr900,000

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 21.3% since its launch.  Ranked 35 in Sectoral category.  Return for 2023 was 39.2% , 2022 was -9.9% and 2021 was 23.9% .

Below is the key information for Nippon India Pharma Fund

Nippon India Pharma Fund
Growth
Launch Date 5 Jun 04
NAV (31 Oct 24) ₹514.737 ↑ 8.07   (1.59 %)
Net Assets (Cr) ₹8,769 on 30 Sep 24
Category Equity - Sectoral
AMC Nippon Life Asset Management Ltd.
Rating
Risk High
Expense Ratio 1.88
Sharpe Ratio 2.35
Information Ratio -0.2
Alpha Ratio -0.38
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 Oct 19₹10,000
31 Oct 20₹14,942
31 Oct 21₹20,150
31 Oct 22₹19,522
31 Oct 23₹22,948
31 Oct 24₹34,675

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 ₹612,552.
Net Profit of ₹312,552
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 31 Oct 24

DurationReturns
1 Month -1.6%
3 Month 5.2%
6 Month 20.1%
1 Year 51.1%
3 Year 19.8%
5 Year 28.2%
10 Year
15 Year
Since launch 21.3%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 49.5%
Fund Manager information for Nippon India Pharma Fund
NameSinceTenure
Sailesh Raj Bhan1 Apr 0519.51 Yr.
Kinjal Desai25 May 186.36 Yr.

Data below for Nippon India Pharma Fund as on 30 Sep 24

Equity Sector Allocation
SectorValue
Health Care96.26%
Asset Allocation
Asset ClassValue
Cash3.74%
Equity96.26%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 09 | SUNPHARMA
14%₹1,263 Cr6,556,349
Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 12 | DIVISLAB
8%₹735 Cr1,350,808
Lupin Ltd (Healthcare)
Equity, Since 31 Aug 08 | 500257
8%₹702 Cr3,203,676
Cipla Ltd (Healthcare)
Equity, Since 31 May 08 | 500087
6%₹513 Cr3,100,000
Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 30 Jun 11 | DRREDDY
5%₹473 Cr700,030
Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 20 | APOLLOHOSP
5%₹467 Cr648,795
Ajanta Pharma Ltd (Healthcare)
Equity, Since 30 Apr 22 | 532331
4%₹307 Cr959,323
Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 30 Sep 21 | 543350
3%₹290 Cr3,027,149
Gland Pharma Ltd (Healthcare)
Equity, Since 30 Nov 20 | GLAND
3%₹269 Cr1,500,000
Abbott India Ltd (Healthcare)
Equity, Since 31 May 11 | ABBOTINDIA
3%₹252 Cr86,390

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 15.4% since its launch.  Ranked 40 in Sectoral category.  Return for 2023 was 38.2% , 2022 was -12.3% and 2021 was 19.1% .

Below is the key information for UTI Healthcare Fund

UTI Healthcare Fund
Growth
Launch Date 28 Jun 99
NAV (31 Oct 24) ₹285.137 ↑ 5.26   (1.88 %)
Net Assets (Cr) ₹1,201 on 30 Sep 24
Category Equity - Sectoral
AMC UTI Asset Management Company Ltd
Rating
Risk High
Expense Ratio 2.38
Sharpe Ratio 2.51
Information Ratio -0.21
Alpha Ratio 1.27
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 Oct 19₹10,000
31 Oct 20₹15,449
31 Oct 21₹19,772
31 Oct 22₹18,618
31 Oct 23₹21,719
31 Oct 24₹34,592

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 ₹612,552.
Net Profit of ₹312,552
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 31 Oct 24

DurationReturns
1 Month -1.6%
3 Month 8.9%
6 Month 27.3%
1 Year 59.3%
3 Year 20.5%
5 Year 28.2%
10 Year
15 Year
Since launch 15.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 43.7%
Fund Manager information for UTI Healthcare Fund
NameSinceTenure
Kamal Gada2 May 222.42 Yr.

Data below for UTI Healthcare Fund as on 30 Sep 24

Equity Sector Allocation
SectorValue
Health Care94.08%
Basic Materials1.3%
Financial Services1.24%
Asset Allocation
Asset ClassValue
Cash3.26%
Equity96.63%
Debt0.11%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 06 | SUNPHARMA
12%₹142 Cr735,274
Cipla Ltd (Healthcare)
Equity, Since 31 Jan 03 | 500087
6%₹74 Cr450,000
↓ -19,180
Ajanta Pharma Ltd (Healthcare)
Equity, Since 31 Jul 17 | 532331
5%₹64 Cr200,000
Dr Reddy's Laboratories Ltd (Healthcare)
Equity, Since 28 Feb 18 | DRREDDY
5%₹59 Cr87,100
Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Apr 21 | APOLLOHOSP
4%₹47 Cr64,796
Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Mar 24 | 532296
3%₹42 Cr250,331
Procter & Gamble Health Ltd (Healthcare)
Equity, Since 31 Dec 20 | PGHL
3%₹40 Cr74,000
Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Dec 20 | 532843
3%₹39 Cr634,445
Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Mar 19 | ERIS
3%₹37 Cr275,361
↓ -22,385
Aurobindo Pharma Ltd (Healthcare)
Equity, Since 31 Oct 13 | AUROPHARMA
3%₹37 Cr250,000

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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