Investment in Pharma Funds - Good or Bad?
Investments in the pharma industry are yielding significant returns at present, due to the emerging competition between different brands. To know how they can help you to attain the investment goals, you must read this blog till the end.
The decision to invest in the stocks of pharmaceutical companies is a confusing one unless you have a keen knowledge about the same. As there is a saying that goes, “An investment in knowledge pays the best interest.” So let us first try and get an idea about whether the mutual fund schemes of Pharma funds category would prove beneficial for you or not.
As the market is showing bright outlook of the pharma industry and is expected to boom in the near future, investments in this industry would definitely yield higher profits for the investors in the coming years. Furthermore, as the population is getting older day by day and pharma companies are helping them to remain healthy, the investors can also contribute towards the health of many individuals by putting their funds in this sector.
The Indian population is having a high demand for medicines, and thus the pharma companies are earning heavy profits. In addition, the demand for Indian medicines has increased in the international market as well which has accelerated the operations and hence, the growth of such companies. Accordingly, if an investor would invest their hard-earned monies into such promising and growing sector, then they would, fortunately be able to earn a high-yielding return on their investment.
As everyone wants to make an investment in the most efficient strategy, the pharma funds provide the same to them. With increasing demands and growing prospects, this industry is on the pace of making assured profits. And hence, they make sure to create wealth for those who are investing their monies in them.
Warren Buffett has said, “Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.” As per the enhancing performance of the pharma industry, we can conclude here that if we buy schemes from the pharma funds, we would not at all lose our money in the coming ages, rather will make high profits. But, investment in any industry can pay the aspiring returns only if it is done in a planned manner. If you do not know where your money is going, you can never manage it. You must have set objectives to make an efficient plan and thus earn the desiring returns.
The pharma funds are best suited for those who want to invest their hard-earned monies for a long-term duration and are seeking investments in the stocks of some particular sector. There are a large number of plans which fall under its category and it is all up to the investor, which he/she opts for making an effective portfolio. As per the expert analysis and in-depth research, there are three most prominent strategies of pharma funds that can yield high returns for the investors in the coming years. Following are the schemes which must be considered before making any selection:
- SBI Pharma Fund: It is a mutual fund investment programme from SBI Mutual Fund, which is designed to provide the maximum possible returns to the investors who are desirous of investing in the pharma funds. It aims to provide the highest growth to the investors by investing in the stocks of growth-oriented companies. It puts the majority of the funds into pharmaceutical companies and to provide diversification, some of the monies are also invested in the service sector. This scheme is proficient in catering the long-term investment requirements by offering the highest returns.
- UTI Pharma Fund: It is a scheme that is designed by the fund manager of UTI Mutual Fund. It provides capital appreciation by making investments in the equity and equity-related securities of such corporates that are indulged in healthcare and pharma activities. To provide diversification, some of the funds in this category are also invested in debt and cash instruments. The performance of this scheme since its inception is appreciable as it has benefited various investors till now.
- Reliance Pharma Fund: The primary objective of this scheme is to generate consistent returns by investing in equity and equity-related securities along with fixed income instruments to provide diversification. The performance of the plan, in the long run, is quite appreciable as it provides returns higher than the set benchmark(S&P BSE Healthcare). An investor who is desirous of putting the hard earned monies into pharma industry can consider this scheme to add in the portfolio.
Furthermore, many schemes falling under this category are performing immensely. But, the plans stated above are among the best ones. If you wish to grow your money into wealth, then start making investments with a growing industry. It’s up to your choice where and how you get the most out of your money.
If in case you get confused while making the best choice, we at My SIP Online are ready to help you out in the most efficient manner by providing different tools and solutions.
- This Independence Day, Let's Pledge for Freedom from Financial Worries2866 min read Aug 14, 2018
- Are Balanced Funds Better Than Balanced Advantage Funds?2984 min read Aug 02, 2018
- 7 Points to Ponder While Investing in Small Cap Funds9933 min read Jul 19, 2018