5 best mutual funds in the pharma and healthcare sector; check full list
Name of the fundFive-year returns (in %)10-year returns (in %)ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund29.22-Mirae Asset Healthcare Fund27.55-ITI Pharma & Healthcare Fund27.15-SBI Healthcare Opportunities Fund26.6817.16Tata India Pharma & Heathcare Fund26.40- The ongoing surge in the Indian pharmaceutical sector has created wealth for investors, especially those invested in healthcare companies. Additionally, the pharmaceutical and healthcare sector serves as a defensive theme as people persist in seeking medical assistance and taking medications even during challenging times.
The spotlight will remain on healthcare, and numerous companies within these sectors are striving to perform optimally within the given constraints. Furthermore, the pharmaceutical sector has exhibited robust performance in the Indian stock market.
This can be attributed to factors such as the worldwide demand for generics, government backing, and the defensive characteristics inherent in the sector. Those looking to invest in this sector should be mindful of the stringent regulations governing the pharmaceutical industry, as alterations in these regulations may affect profitability.
Given the high level of competition both domestically and internationally, Indian companies must consistently innovate and enhance efficiency to sustain their market presence. Additionally, the Indian government enforces price controls on certain essential drugs, potentially restricting profit margins for companies.
Examining the holdings of diversified equity funds, it is evident that large-cap-oriented portfolios typically have a moderate average exposure of 2-5% to the pharma/healthcare sector. In contrast, multicap and mid-cap funds exhibit a
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