Sectoral - Pharma Mutual Funds

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The Pharma mutual funds are those who allocate the assets in the companies in the business of pharmaceuticals and healthcare. pharma funds are the highly volatile funds as the growth of capital as well as scheme depends upon the growth in the sector. Investors who have a vast knowledge of the industry are suggested to invest in sector pharma funds.

Recommended Funds  
Scheme Name Category Nav Return(%) Rating Analysis Amount Action
SBI Healthcare Opportunities Fund (G) Earlier known as SBI Pharma Fund (G)
sectoral-pharma -5.13

sectoral-pharma N/A

sectoral-pharma 1.8

UTI Healthcare Fund (G) Earlier known as UTI Pharma Health (G)
sectoral-pharma -2.79

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Pharma Mutual Funds - Most Consistent Funds in India

We all fall sick at some point of time. We also go to the hospitals and take health advice from the doctors. But, have you ever imagined that the medicines which we take are manufactured by some companies, and we can invest in those companies by the way of mutual funds. The type of mutual funds which invest only in the Health Care sector is called as Pharma funds. The investment plan  through Pharma mutual funds is made in organizations like hospital management firms, Health Maintenance Organizations (HMO), biotechnology, etc. There is a vast scope in Pharma funds india because people will continue to spend on their health care products as it comes under essentials required to survive. Investing in a sector of consistent demand, Pharma funds are in a way, defensive funds. The Pharma funds carry with them the factors of security and risk minimization.

Healthcare funds are often free from the business-cycle fluctuations and have seen a bullish trend ever since the year 2002. The pharmaceutical companies are constantly increasing in number and thus, providing a boom in the Pharma Mutual Funds also. This is more secure form of equity investment.

Why invest in a Pharma  Funds?

The clients who have a perspective of growth and security in equity investments then they should definitely go in for Pharma Funds. The Pharma mutual funds provide tax-benefit to some extent but not more than the other sector funds. As you know, the demand in the Healthcare sector is increasing consistently there are better opportunities in this sector as compared to any other sector. The AMCs are always on a look-out for Healthcare companies which have either invented new drugs or are doing so for a long time, in order to increase the life expectancy and also to improve the health of the people. The Pharma Funds mainly target the Pharmaceutical companies which are constantly making progress, so that the money of the investors is safe.

Benefits of investing in Pharma Mutual Funds

Being a sector constantly escalating, the Pharma Funds share the following benefits:

  • Consistently growing sector: The Pharma sector funds are the most consistently growing funds. Even though impending with a slow rate, the Pharma sector funds are giving exhilarating returns to the investors who are holding their money in the schemes with patience or are invested via SIP. Since 2002, there is a prolific increase in the number of companies in the pharmaceutical sector.
  • Good returns in the long-run: The Pharma Funds provide handsome returns to the investors having a long-term perspective on their investment. As you have read earlier, the pharmaceutical sector is growing but at a slow and steady rate. Therefore, a smart investor would choose the Healthcare Mutual funds only when he/she can hold the money for a relatively longer period and can compromise on a little lower rate of returns.
  • Security guaranteed: Being a very consistent sector, Pharma Mutual Funds provide a very high degree of security factor attached to it. As it is a sector which has never-ending demands, it has a wider growth perspective. So, with security growth is guaranteed. 

You can find the best Pharma funds india on our list like UTI Pharma & Health (G), SBI Pharma Fund (D), etc. Providing the best services our experts will guide you at every step of the investing process and  guide you to choose top performing mutual funds and you can calculate your return with the help of sip calculator.