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The pharmaceutical sector has been on the watch list of the experts for quite a while as the industry has been facing a rough year, but experienced investors are looking it as an opportunity to grab the most out of pharmaceutical mutual funds. The sector is expected to enjoy beneficial quarters due to the efforts of the government to stabilise the sector. It can be considered a good bet to invest in pharma mutual funds through the sectoral funds are full of surprises. These funds are advisable to the experienced investors who can read the trends of the equity market and the prospects of pharma funds. To invest in the pharma mutual funds, take the assistance of financial experts available at MySIPonline.
What Are Pharma Sector Funds?
A Sectoral fund is a mutual fund which restricts the fund manager to invest only in that particular sector to which the fund is affiliated. Sector funds can provide bountiful returns if the equity market is favourable to the specific sector. Pharmaceutical funds are the mutual funds which invest their corpus in the equity and equity derivative instruments of health-care, medicine, and other pharmacy related companies. These funds generally face exponential rise or fall as the development, growth and downfall of the companies related to pharma sector follows each other, hence the rise in the industry will give a rise to every company linked to it.
Top Pharma Funds of India
Reliance Pharma Fund (G): This fund has a solid track record for long-term investment. It has generated an annualised return of 20.60% since its inception in June 2004. It has beaten its benchmark and peers with a wide margin concerning rolling returns by providing an annualised return of 20.22% in 10 years and 14.61% in 5 years. In the adverse market, when the returns of most schemes of its category were on a downfall, this fund has been able to keep up with positive returns. (data as of 24th July 2018)
Tata India Pharma & Healthcare Fund (G): This fund is a late entrant and hasn’t seen good days of the pharmaceutical sector but can be expected to perform well in the future due to the support of Tata Mutual Fund. It has played above its benchmark since inception.
SBI Pharma Fund (G): This fund has a long-term prospect and has generated an annualised return of 15.15% since inception. The recent performance has been below the benchmark hence this fund does not perform well in the negative market trends due to high influence of small-cap companies. It has generated an annualised return of 14.10% and 11.11% in 10 and five years respectively. (data as of 24th July 2018)
Pharmaceutical funds are facing rough days, but this also provides an excellent opportunity to the experienced investors to buy more units at a lower price. The sector is expected to rise again in the upcoming years and investing in these funds via SIP mode can be very beneficial for the next 2-3 years. Investors should take the assistance of the financial experts available at MySIPonline to invest in the best pharma Funds at the right time to get the maximum returns.