Sector-oriented mutual fund schemes are gaining huge popularity as the knowledge about these schemes are increasing among investors. People have started realizing the opportunities these schemes hold for both long and short-term investments. Now one particular sector that is observing heavy intake of investments is the pharma sector and the reason is the recovery that stocks of pharmaceutical companies have shown in the past few months. In this article, we are going to discuss 3 pharma funds that you can invest in 2018 to enjoy high returns in the future.
Reliance Pharma Fund
A top-notch pharma mutual fund from Reliance Mutual Fund, launched on Jun 05, 2004, with the objective to generate capital appreciation by investing predominantly in pharmaceuticals and related securities. The scheme picks stocks by looking at the fundamentals and the future growth associated with them. It invests in companies from all 3 market caps and currently has 57.17% investment in large-caps, 32.83% in mid-caps, and 10% in small-caps. The returns given by the scheme in 1, 3, 5, and 10 years are, 5.49%, 0.61%, 14.19%, and 20.04, respectively. It has successfully beaten its benchmark at all instances and is currently holding 1st rank in its respective category. As on Jul 23, 2018, Reliance Pharma Fund NAV is Rs 141.68 and the assets under management as recorded on Jun 30, 2018, are worth Rs 2,144 crores. It charges an annual expense ratio of 2.48%, and you will have to pay an exit load of 1% if you redeem your investments before 365 days. The minimum investment required to start an investment in this scheme is Rs 5000, thereafter you can make additional investments of as low as Rs 1000. You can also start a SIP with a minimum of Rs 100.
SBI Healthcare Opportunities Fund
This fund was launched on Jul 14, 1994, as an open-ended scheme and was previously known as SBI Pharma Fund. It too follows a diversified portfolio and has 38.77% investment in large-caps, 39.60% in mid-caps, and 21.63% in small-cap companies. It also has a very small portion of 5.33%, invested in debt instruments. SBI Healthcare Opportunities Fund is a very good option to invest right now as most of the stocks in its portfolio are dealing at very lower levels and are expected to return to their intrinsic values soon, and when that happens, the returns provided by the scheme will be huge. In the past 3, 5, and 10 years, it has given returns of -7.79%, 10.38%, and 13.89% (as on Jul 23, 2018) and has successfully beaten its benchmark which has provided returns of -9.57%, 4.86%, and 11.39% in the same time frame. Currently, SBI Healthcare Opportunities Fund NAV is Rs 112.07 (as on Jul 23, 2018) and the assets under management as recorded on Jun 30, 2018, are worth Rs 958 crore.
UTI Healthcare Fund
This scheme was launched on Jun 28, 1999, and was previously known as UTI Pharma & Healthcare Fund. It currently has a net asset value of Rs 83.09 (as on Jul 23, 2018) and is managing an asset size of Rs 403 crore (as on Jun 30, 2018). It has provided returns of -4.65%, 9.15%, and 13.62% in 1, 3, and 5 years, respectively (as on Jul 23, 2018) and has successfully beaten its benchmark at all instances. The short-term returns are not that good because of the fall that pharma stocks faced a year back, but a great increase can be seen in long-term returns, showing how determined UTI Healthcare Fund is towards achieving the objective of long-term capital appreciation. The top equity holdings of the scheme include ace companies like Sun Pharmaceutical Industries, Cipla, Alkem Laboratories, Pfizer, and Torrent Pharmaceuticals.
So, these are all the pharma funds that show great future growth and from which you can choose to get high returns in the future. Pharma sector after a downfall of 2 years is again showing great possibilities of growth and people who will grab this opportunity will enjoy the results in the coming years.
Read this article to know about the top 3 pharma sector funds in which you can invest in 2018.
Dishika baheti is a Capital Market Analyst working with MySIPonline. She holds ample of experience in the mutual fund market and have an expertise in analyzing sector oriented mutual fund schemes.
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