The below table shows a list Of the Sector Mutual Fund’s best Pharma Mutual Funds Based on AUM, NAV and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| Nippon India Pharma Fund | 8,914.89 | 526.09 | 100 |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | 5,320.29 | 39.24 | 100 |
| SBI Healthcare Opp Fund | 3,628.03 | 462.33 | 500 |
| DSP Healthcare Fund | 3,339.79 | 42.26 | 100 |
| Mirae Asset Healthcare Fund | 2,863.52 | 39.86 | 99 |
| HDFC Pharma and Healthcare Fund | 1,577.12 | 15.92 | 100 |
| Tata India Pharma & Healthcare Fund | 1,287.45 | 33.32 | 100 |
| UTI Healthcare Fund | 1,235.91 | 298.97 | 500 |
| Aditya Birla SL Pharma & Healthcare Fund | 854.32 | 31.93 | 100 |
| Kotak Healthcare Fund | 439.02 | 13.2 | 100 |
Table of Contents
Introduction To Pharma Mutual Fund
Nippon India Pharma Fund
Nippon India Pharma Fund Direct-Growth is a Sectoral-Pharma mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.
Nippon India Pharma Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹8,914.89 crores, a 5-year CAGR of 25.61%, an exit load of 1%, and an expense ratio of 0.91%. The SEBI risk category is Very High.
The actual asset composition includes : 98.14% Equity, 0.01% Debt, 1.85% in Others.
ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund
ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct – Growth is a Sectoral-Pharma mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 6 years 7 months, having been launched on 25/06/2018.
ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹5,320.29 crores, a 5-year CAGR of 28.52%, an exit load of 1%, and an expense ratio of 1.08%. The SEBI risk category is Very High.
The actual asset composition includes : 98.07% Equity, No Debt, 1.93% in Others.
SBI Healthcare Opp Fund
SBI Healthcare Opportunities Fund Direct Plan-Growth is a Sectoral-Pharma mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.
SBI Healthcare Opp Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹3,628.03 crores, a 5-year CAGR of 27.84%, an exit load of 0.5%, and an expense ratio of 0.89%. The SEBI risk category is Very High.
The actual asset composition includes : 96.55% Equity, 0.08% Debt, 3.37% in Others.
DSP Healthcare Fund
DSP Healthcare Fund Direct – Growth is a Sectoral-Pharma mutual fund scheme from DSP Mutual Fund. This fund has been in existence for 6 years 2 months, having been launched on 12/11/2018.
DSP Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹3,339.79 crores, a 5-year CAGR of 28.41%, an exit load of 0.5%, and an expense ratio of 0.57%. The SEBI risk category is Very High.
The actual asset composition includes : 97.48% Equity, No Debt, 2.52% in Others.
Mirae Asset Healthcare Fund
Mirae Asset Healthcare Fund Direct – Growth is a Sectoral-Pharma mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 6 years 7 months, having been launched on 11/06/2018.
Mirae Asset Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹2,863.52 crores, a 5-year CAGR of 27.3%, an exit load of 1%, and an expense ratio of 0.49%. The SEBI risk category is Very High.
The actual asset composition includes : 99.21% Equity, 0.01% Debt, 0.79% in Others.
HDFC Pharma and Healthcare Fund
HDFC Pharma And Healthcare Fund Direct – Growth is a Sectoral-Pharma mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 1 years 4 months, having been launched on 14/09/2023.
HDFC Pharma and Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹1,577.12 crores, a 1-year return of 34.2%, an exit load of 1%, and an expense ratio of 0.91%. The SEBI risk category is Very High.
The actual asset composition includes : 98.04% Equity, No Debt, 1.96% in Others.
Tata India Pharma & Healthcare Fund
Tata India Pharma & Healthcare Fund Direct-Growth is a Sectoral-Pharma mutual fund scheme from Tata Mutual Fund. This fund has been in existence for 9 years 1 months, having been launched on 04/12/2015.
Tata India Pharma & Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹1,287.45 crores, a 5-year CAGR of 26.15%, an exit load of 0.25%, and an expense ratio of 0.68%. The SEBI risk category is Very High.
The actual asset composition includes : 94.9% Equity, No Debt, 5.1% in Others.
UTI Healthcare Fund
UTI Healthcare Fund Direct-Growth is a Sectoral-Pharma mutual fund scheme from Uti Mutual Fund. This fund has been in existence for 12 years, having been launched on 01/01/2013.
UTI Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹1,235.91 crores, a 5-year CAGR of 25.67%, an exit load of 1%, and an expense ratio of 1.21%. The SEBI risk category is Very High.
The actual asset composition includes : 97.59% Equity, 0.11% Debt, 2.3% in Others.
Aditya Birla SL Pharma & Healthcare Fund
Aditya Birla Sun Life Pharma & Healthcare Fund Direct-Growth is a Sectoral-Pharma mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 5 years 7 months, having been launched on 20/06/2019.
Aditya Birla SL Pharma & Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹854.32 crores, a 5-year CAGR of 22.77%, an exit load of 1%, and an expense ratio of 0.91%. The SEBI risk category is Very High.
The actual asset composition includes : 96.51% Equity, No Debt, 3.49% in Others.
Kotak Healthcare Fund
Kotak Healthcare Fund Direct – Growth is a Sectoral-Pharma mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 1 years 2 months, having been launched on 20/11/2023.
Kotak Healthcare Fund falls under the Sectoral Fund – Pharma & Health Care category with an AUM of ₹439.02 crores, 1-year return of 24.94%, an exit load of 0.5%, and an expense ratio of 0.76%. The SEBI risk category is Very High.
The actual asset composition includes : 98.58% Equity, No Debt, 1.42% in Others.
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What Are Pharma Sector Mutual Funds?
Pharma Sector Mutual Funds are specialized equity funds that primarily invest in stocks of pharmaceutical and healthcare companies. These funds aim to capitalize on the growth and performance of the pharmaceutical industry, which plays a crucial role in healthcare and biotechnology.
These funds typically allocate a majority of their assets to stocks of pharmaceutical companies, biotechnology firms, healthcare equipment manufacturers and related businesses. They offer investors focused exposure to the pharmaceutical sector’s potential.
Pharma Sector Mutual Funds can be attractive to investors who believe in the long-term growth prospects of the healthcare and pharmaceutical industries and want to benefit from their performance without directly investing in individual pharma stocks.
Features Of Pharma Mutual Fund
The main features of Pharma Mutual Funds include sector-specific focus, potential for high growth, exposure to healthcare innovation, global market opportunities and potential for defensive performance during market downturns.
1. Sector Focus: These funds concentrate investments in pharmaceutical and healthcare companies, providing targeted exposure to this specific sector.
2. Growth Potential: The pharmaceutical sector often offers high growth potential due to ongoing medical research and development.
3. Innovation Exposure: Pharma funds provide access to companies at the forefront of medical and biotechnological innovations.
4. Global Opportunities: Many pharma funds invest in both domestic and international pharmaceutical companies, offering global exposure.
5. Defensive Nature: Healthcare stocks are often considered defensive investments, potentially offering stability during economic downturns.
Best Pharma Mutual Funds Based On Expense Ratio
The table below shows the best Pharma Mutual Funds Based On Expense Ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| ITI Pharma & Healthcare Fund | 0.47 | 500 |
| Mirae Asset Healthcare Fund | 0.49 | 99 |
| DSP Healthcare Fund | 0.57 | 100 |
| Bajaj Finserv Healthcare Fund | 0.61 | 500 |
| Tata India Pharma & Healthcare Fund | 0.68 | 100 |
| WOC Pharma and Healthcare Fund | 0.69 | 500 |
| Quant Healthcare Fund | 0.7 | 1000 |
| PGIM India Healthcare Fund | 0.72 | 1000 |
| Kotak Healthcare Fund | 0.76 | 100 |
| SBI Healthcare Opp Fund | 0.89 | 500 |
Top Pharma Mutual Funds Based On 3Y CAGR
The table below shows Top Pharma Mutual Funds Based On 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| SBI Healthcare Opp Fund | 24.52 | 500 |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | 24.3 | 100 |
| DSP Healthcare Fund | 22.7 | 100 |
| Tata India Pharma & Healthcare Fund | 21.76 | 100 |
| UTI Healthcare Fund | 20.81 | 500 |
| ITI Pharma & Healthcare Fund | 20.2 | 500 |
| Nippon India Pharma Fund | 19.76 | 100 |
| Aditya Birla SL Pharma & Healthcare Fund | 19.52 | 100 |
| Mirae Asset Healthcare Fund | 19.42 | 99 |
Best Pharma Mutual Funds In India Based On Exit Load
The table below shows the Best Pharma Mutual Funds In India Based On Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| Tata India Pharma & Healthcare Fund | Tata Asset Management Private Limited | 0.25 |
| PGIM India Healthcare Fund | PGIM India Asset Management Private Limited | 0.5 |
| Kotak Healthcare Fund | Kotak Mahindra Asset Management Company Limited | 0.5 |
| SBI Healthcare Opp Fund | SBI Funds Management Limited | 0.5 |
| DSP Healthcare Fund | DSP Investment Managers Private Limited | 0.5 |
| Bajaj Finserv Healthcare Fund | Bajaj Finserv Asset Management Limited | 1 |
| WOC Pharma and Healthcare Fund | WhiteOak Capital Asset Management Limited | 1 |
| Quant Healthcare Fund | Quant Money Managers Limited | 1 |
| HDFC Pharma and Healthcare Fund | HDFC Asset Management Company Limited | 1 |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | ICICI Prudential Asset Management Company Limited | 1 |
Pharma Mutual Funds Returns
The table below shows Pharma Mutual Funds Returns Based on 1Y return.
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| HDFC Pharma and Healthcare Fund | 34.2 | 100 |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | 29.25 | 100 |
| SBI Healthcare Opp Fund | 27.9 | 500 |
| UTI Healthcare Fund | 26.33 | 500 |
| DSP Healthcare Fund | 26.19 | 100 |
| Kotak Healthcare Fund | 24.94 | 100 |
| ITI Pharma & Healthcare Fund | 24.74 | 500 |
| Tata India Pharma & Healthcare Fund | 23.79 | 100 |
| Mirae Asset Healthcare Fund | 23.17 | 99 |
| Aditya Birla SL Pharma & Healthcare Fund | 18.74 | 100 |
Historical Performance Of Pharma Sector Mutual Fund
The table below shows the historical Performance Of Pharma Sector Mutual Funds Based on 5Y return.
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | 28.52 | 100 |
| DSP Healthcare Fund | 28.41 | 100 |
| SBI Healthcare Opp Fund | 27.84 | 500 |
| Mirae Asset Healthcare Fund | 27.3 | 99 |
| Tata India Pharma & Healthcare Fund | 26.15 | 100 |
| UTI Healthcare Fund | 25.67 | 500 |
| Nippon India Pharma Fund | 25.61 | 100 |
| Aditya Birla SL Pharma & Healthcare Fund | 22.77 | 100 |
Factors To Consider When Investing In Pharma Sector Mutual Fund
When investing in Pharma Sector Mutual Funds, consider the fund’s performance history, expense ratio, fund manager expertise, portfolio composition and the overall outlook for the pharmaceutical industry. These factors can significantly impact the fund’s performance and suitability for your investment portfolio.
1. Fund Performance: Evaluate the fund’s historical performance against its benchmark and peer funds over various time periods.
2. Expense Ratio: Compare expense ratios across different pharma funds. Lower fees can have a substantial impact on long-term returns.
3. Manager Expertise: Research the fund manager’s experience and track record in the pharmaceutical sector. Sector-specific knowledge is crucial.
4. Portfolio Composition: Examine the fund’s holdings to understand its focus within the pharma sector (e.g., generic drugs, biotech, healthcare equipment).
5. Industry Outlook: Consider the current and prospects of the pharmaceutical industry, including regulatory environment and technological advancements.
How To Invest In Pharma Mutual Funds?
To invest in Pharma Mutual Funds, start by researching funds with strong long-term performance in the pharmaceutical sector. Consider factors like expense ratios, fund manager expertise and the overall outlook for the healthcare industry. Align the investment with your financial goals and risk tolerance.
Choose between lump sum investments or Systematic Investment Plans (SIPs) based on your financial situation. SIPs can be particularly beneficial for sector-specific funds like pharma, allowing you to average out the impact of market volatility over time.
Open an account with Alice Blue. Complete the necessary documentation, including KYC requirements and initiate your investment. Regularly review your portfolio, keeping an eye on trends in the pharmaceutical sector and the fund’s performance relative to its benchmark.
Impact Of Market Trends On Pharma Sector Mutual Fund
Market trends significantly impact Pharma Sector Mutual Funds. Factors such as healthcare policies, drug pricing regulations, patent expirations and technological advancements in medical research can all influence the performance of pharmaceutical companies and, consequently, these funds.
During health crises or pandemics, pharma funds may see increased interest and potentially higher returns. Conversely, regulatory changes or negative news about drug trials can lead to volatility in the sector.
How Pharma Sector Mutual Fund Perform In Volatile Markets?
Pharma Sector Mutual Funds often demonstrate resilience in volatile markets due to the defensive nature of healthcare stocks. The pharmaceutical industry typically maintains demand even during economic downturns, as healthcare needs persist regardless of market conditions.
However, these funds are not immune to market volatility. Factors specific to the pharma sector, such as regulatory changes or drug trial results, can cause fluctuations. The funds’ performance in volatile markets can also depend on their specific portfolio composition and management strategy.
Benefits Of Pharma Mutual Funds
The main benefits of Pharma Mutual Funds include exposure to a growing sector, the potential for high returns, access to healthcare innovation, professional management and the defensive nature of healthcare stocks.
1. Sector Growth: Pharma funds provide exposure to the healthcare sector, which has the potential for long-term growth due to ageing populations and medical advancements.
2. Innovation Access: These funds offer investors a way to participate in cutting-edge medical and biotechnological innovations.
3. Professional Management: Fund managers with specialized knowledge of the pharmaceutical industry make informed investment decisions.
4. Defensive Characteristics: Healthcare stocks often show resilience during economic downturns, potentially providing portfolio stability.
5. Diversification: Pharma funds can offer diversification benefits when added to a broader investment portfolio.
Risks Of Investing In Pharma Sector Mutual Fund
The main risks of investing in Pharma Sector Mutual Funds include regulatory risks, research and development risks, patent expiration impacts, litigation risks and sector concentration risks.
1. Regulatory Risk: Changes in healthcare policies or drug approval processes can significantly impact pharmaceutical companies’ performance.
2. R&D Risk: The success of pharmaceutical companies often depends on uncertain outcomes of drug development and clinical trials.
3. Patent Expiration: When patents on blockbuster drugs expire, it can lead to increased competition and reduced revenues for pharma companies.
4. Litigation Risk: Pharmaceutical companies are often subject to lawsuits, which can impact their financial performance and stock prices.
5. Concentration Risk: Focusing on a single sector increases risk compared to more diversified funds, as poor sector performance can significantly impact returns.
Contribution Of Pharma Sector Mutual Fund To Portfolio Diversification
Pharma Sector Mutual Funds can contribute to portfolio diversification by providing focused exposure to the healthcare sector. While not diversified, these funds can complement other investments in a well-rounded portfolio, potentially enhancing overall returns and risk-adjusted performance.
The defensive nature of healthcare stocks can also provide stability to a portfolio during economic downturns. However, it’s important to balance the allocation to sector-specific funds like pharma with broader market investments to maintain overall diversification.
Who Should Invest In Pharma Mutual Funds?
Pharma Mutual Funds are suitable for investors with a high-risk tolerance and a positive outlook on the healthcare and pharmaceutical industries. These funds can be appropriate for those seeking focused exposure to the pharma sector and who are comfortable with the potential volatility associated with sector-specific investments.
Investors should have a long-term investment horizon, typically 5-7 years or more, to ride out market fluctuations and benefit from the sector’s growth potential. It’s also beneficial to have some understanding of the pharmaceutical industry and its dynamics.
Impact Of Fund Manager Expertise On Pharma Sector Mutual Fund Performance
Fund manager expertise can significantly impact the performance of Pharma Sector Mutual Funds. Experienced managers with deep knowledge of the pharmaceutical industry can potentially identify promising companies, anticipate regulatory changes and navigate sector-specific challenges more effectively.
Skilled managers may also be better equipped to assess the potential of new drugs in development, understand the implications of patent expirations and adjust the portfolio in response to healthcare policy changes. Their expertise is crucial in this highly specialized and dynamic sector.
FAQs – Pharma Sector Mutual Fund
A Pharma Mutual Fund is a sector-specific investment scheme that focuses on companies within the pharmaceutical and healthcare industry. These funds aim to generate returns by investing in drug manufacturers, healthcare providers, biotech firms and related businesses, offering potential long-term growth opportunities.
Best Pharma Mutual Funds In India #1: Nippon India Pharma Fund
Best Pharma Mutual Funds In India #2: ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund
Best Pharma Mutual Funds In India #3: SBI Healthcare Opp Fund
Best Pharma Mutual Funds In India #4: DSP Healthcare Fund
Best Pharma Mutual Funds In India #5: Mirae Asset Healthcare Fund
These funds are listed based on the Highest AUM.
The best mutual funds in the Pharma sector, based on expense ratio, include ITI Pharma & Healthcare Fund, Mirae Asset Healthcare Fund, DSP Healthcare Fund, Bajaj Finserv Healthcare Fund, and Tata India Pharma & Healthcare Fund. These funds offer focused investments in the pharmaceutical and healthcare industries.
To invest in Pharma Mutual Funds, research funds with strong long-term returns in the pharmaceutical sector. Open an account with Alice Blue, complete KYC requirements and start investing through lump sum or SIP options.
Investing in Pharma Mutual Funds can be beneficial for those seeking exposure to the healthcare sector and the potential for high growth. However, consider your risk tolerance and ensure it aligns with the sector-specific nature of these funds. They should typically be part of a diversified portfolio.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
