Nowadays, investors are bending towards healthcare/ pharma mutual funds for increased returns. Healthcare mutual funds are sector specific funds and demand investment in pharmaceutical companies. Our large population is at the core of all issues in India. With that, medical needs are on a rise as well, including medicines and healthcare services. This way, healthcare companies are earning really well.
A recent study reports that India ranks 3rd to be the largest pharmaceutical market. Infact, it is anticipated to rise to USD 55 billion at a CAGR of 15.92% by the year 2020 and at USD 100 billion by 2025. This rapid change looks to grow better in times to come. Naming a few major giants ae doing extremely well in the market. Brands like Cipla, Ranbaxy, Dr. Reddy’s Labs, Glenmark etc are performing really well in the pharmaceutical market.
Healthcare mutual funds are majorly placed in the equity sector which means investment in pharma company stocks. These healthcare funds are extremely return oriented owing to the super-fast growth in the market.
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In a country like ours where pharma has an indispensable role, the largest players in the healthcare domain can be viewed as under:
- Reliance Pharma Fund
- TATA India Pharma & Healthcare Fund
- UTI Healthcare Fund and
- SBI Healthcare Opportunities Fund
Reliance Pharma Fund has been in the market for the longest now. Its existence has been quite ancient with a return of about 20.8% compared to the beginning.
SBI Healthcare Opportunities Fund is also old in the market and pays out 12.9% of the times its out in the market. It is rapidly increased to 56.8% in the year 2014.
UTI Healthcare Fund is one of the oldest pharma fund, launched in the year 1999 and gives out about 13.5%.
TATA India Pharma & Healthcare Fund hit the market in the year 2015. The volume of funds reflected a gigantic number at 131.79% over the last one year.
The Reliance Pharma Fund has ranked well in the last couple of days. The category average has been considerable at 19.77% & 18.81%. The major motive of this fund is pay out desirable amounts of returns by investing in equity and equity related instruments of pharmaceutical companies. It is a high risk scheme with about 20.1% CAGR/Annualized return. The return for 2018 was 3.6% and in 2017 was 7.6%.
TATA India Healthcare Fund has a long term perspective with a long term appreciation value. An investment of 80% of the net assets is placed in the pharma sector in India. TATA India Pharma & Healthcare Fund has an Annualized return of -3.8%. Being invested in equity, it’s quite is a high risk proposition. 2.6% for 2018, 4.7% for 2017 and 14.7% for 2016 as returns.
UTI Healthcare Fund– the purpose of this scheme is clearly to focus on capital augmentation into equity & equity related instruments. This scheme was launched in 1999 and again is categorized as high risk. It has a CAGR/Annualized return of 13% after its introduction.
SBI Healthcare Opportunities Fund– To boost growth, equity instruments are targeted and provides maximum growth for future. All the chosen stocks are growth based and ensure a better tomorrow. SBI Healthcare Opportunities Fund has an equity based portfolio at offer. It is a fund with High risk and has given a CAGR/Annualized return of 12.5% since its launch. The returns as reported have been -9.9%, in 2018, 2.1 in the year 2017 and -14% in the year 2016.