DSP HealthCare Fund: Eyeing the Indian Healthcare Market

Adding new feathers in its cap, the DSP Mutual Fund has formally stated the launch of DSP Healthcare Fund which is an open-ended scheme investing in the Indian healthcare and pharma sector. The NFO (New Fund Offer) was opened yesterday and will close on November 26.

The fund would be predominantly investing in equity and equity-related securities of healthcare and pharmaceutical companies with some portfolio allocation to foreign securities. Reports suggest that DSP Healthcare Fund may be investing up to twenty-five percent in international healthcare, with an eye on the large US companies, and also giving the investors access to international diversification. The fund is to be managed by Aditya Khemka and Vinit Sambre and Jay Kothari have been designated as the fund manager for managing overseas investments.

Constructing a positive outlook, Kalpen Parekh – President, DSP Investment Managers quoted “This is an interesting time for the Indian Healthcare sector. Despite disappointing earnings growth in FY18, many companies are at an inflection point and have the potential to be rerated as temporary disruptions get resolved. Indian investors can take advantage of the potential in the space with an added element of global diversification to manage volatility”.

The launch of the new fund aims to promote three key growth areas – increasing demand, new export opportunities along with creating a conducive policy environment. As the focus shifts on R&D, the Indian healthcare market is believed to evolve as a major hub in the global healthcare arena. Driven further by the recent initiatives and health care programmes by the Government, the sector is set to be on the trajectory of growth.

The DSP group is one of the most prominent and acclaimed financial firms in the country. The group has been quite influential in the evolution and professionalization of capital markets and money management business in India.