Why Should I Put My Money in TATA Pharma Fund?
TATA India Pharma Fund is the latest release made by TATA Mutual Fund. Through this scheme, the fund house aims to capture the growth of the pharma sector which is currently booming in India. The scheme has been specifically designed for the kind of people who are interested in sector-oriented investments, and for the general class of investors looking for an option to infuse diversification in their investment plan.
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TATA India Pharma & Healthcare Fund – The Inside Story
India has a very big market for consumer goods, especially medicines. About Rs 5000 crore worth of medicines are purchased on a daily basis in India, which gives a clear outline of the scope of the pharma sector in the country. Hence, TATA Pharma Fund – Regular Plan was introduced in India with an aim to tap the best opportunities in the pharma industry. The fund primarily targets those organisations that bear a large stake in the pharma sector, for instance, giant medicinal companies that are either engaged in production or research of medicines.
The choice of companies made by TATA Pharma Fund is applaudable, since their financial records are solid and they hold a promising future for themselves. Further, the experts have given their (positive) comments in support of investing in this pharma mutual fund, which makes it an even more trustful bet to invest in TATA India Pharma & Healthcare Fund.
TATA Pharma Fund India – The Business Model
The business model of TATA India Pharma Fund is very simple but thoughtful. The investment has been centred towards buying the midcap stocks, with a modest exposure to large cap stocks. For ensuring that the portfolio nests high energy and controlled risk exposure, the fund managers have focused on successful companies of the pharma industries, such as Sun Pharmaceuticals, Abbott India, Cipla, and Lupin. Further, the total number of stocks, for the time being, are kept at 17 which may be increased or decreased as per the market conditions and what the fund managers may find best for the health of the fund. The division of the assets, which currently stand at Rs. 145 crore (as of 30th June, 2018) has been done judiciously, as per the market position and rankings of the pharma companies. The following is the division matrix followed by the fund: -
- About 92.53% returns are engaged in the top 3 companies of the pharma sector. This includes a stake in Sun Pharmaceuticals, Piramal Enterprises, and Ipca Laboratories.
- The focus is placed on midcap stocks, which currently oscillates within the range of 45-50%. In addition to it, the company has also laid emphasis on giant & large as well as small companies to plug in the portfolio to high power.
TATA India Pharma Fund – Regular Plan Growth – The Risk Analysis
The entry and survival in the competitive environment of mutual fund investments has become reasonably challenging. Today, the market stands stiff with success being reserved for only the tough contestants. Predicting the market to accuracy is certainly implausible, and only estimations could be made for the likely outcome that may not turn the way expected. Hence, amidst such a foggy situation, it is quite absurd to expect a new fund like TATA Pharma Fund India to perform and yield high returns. For the fund to grow and make an achievable stand in the market, the estimated time period to be allowed shall be somewhere between 5-7 years.
An opinion can be formed from this information that at present, investing in TATA India Pharma & Healthcare Fund Growth is a bit risky since the fund is still in its germination stage. Thus, it is advised that if you are planning to leverage on the booming pharma sector through Pharma funds keeping this fund at the centre of your investment plan, then you should have a bigger appetite for risk. If you are risk-averse, then also you may proceed with an investment in this fund via an SIP Plan through the secured portal of MySIPonline. This way, you’ll melt down the risk to an acceptably low level, and will be able to grow in tandem with the growing pharma companies.
TATA Pharma Fund – The Investment Essentials
Before progressing with an investment in a mutual fund, you should first unearth and learn some of its important facts. A beforehand knowledge of these specs will help you devise an infallible plan for yourself that will be attuned best to your needs.
- The Net Assets Value
The NAV or the Net Asset Value of a fund, though not a direct measure of the fund’s success, plays a vital role in creating the plan around your budget. The NAV is nothing but the per unit price that you have to buy for buying n number of units in a fund. At present, the NAV of Tata Pharma Fund stands at Rs. 8.45 after slipping by 64 basis points on 19th July, 2018. Since the fund is running cheap and the pharma industry is at a boom, now may be the best time to invest in this fund. Do run a background check on yourself before making a final decision. You may take the help of MySIPonline’s assistance team which is just a call away, and clarify all the doubts you may have regarding your investment aesthetics.
- The Investment Approach
For a smooth execution of your investment plan, we recommend to take the route of an SIP investment with our free online services at MySIPonline. Since the fund has kept the minimum investment cap at a modest value of Rs. 500 through an SIP, you can easily plan an investment in this fund and can avoid the hiccups that may ruin your plan. Also, you’ll be provided with an online SIP Calculator to check the future value of your investments at different maturity dates, plus a Tax Calculator to determine how much tax you ought to pay on your annual earnings. On top of that you’d also have your own personal dashboard, through which you’d be able to scan the movement of your investments on a daily basis. This feature will help you take important decisions regarding your investment in TATA India Pharma & Healthcare Fund (Growth), as you’d be clearly able to judge if at all you should continue staying put in it or take discharge from it.
So, if you are highly motivated to earn some good money from your investments, then you ought to invest in TATA Pharma Fund. Choose MySIPonline for experiencing the fastest and smoothest investment you could possibly make in your lifetime.