Want to invest in pharma theme? 14 mutual fund options with returns, other details

Amid a growing traction for thematic mutual funds, investors willing to invest in pharma theme, have over a dozen options at their disposal. There are 8 active schemes which have been there for five years or more with average returns of 23% which is higher than their benchmark returns of 20%.

Meanwhile, total count for schemes which are three years or older but have not completed 5 years are 9. There are five schemes which have been in inception for less than three years.

These funds have delivered a CAGR returns of 18% over a three-year period which is on par with the returns by their benchmarks during this period.

DSP Healthcare Fund-Reg(G) has completed three years and its CAGR returns over the last three years stand at 19.01%.

Funds which have not completed even three years are:

– HDFC Pharma and Healthcare Fund-Reg(G): Launched on October 4, 2023, this scheme has given returns of 18.17% and its total asset under management (AUM) is around Rs 732 crore.

– ITI Pharma & Healthcare Fund-Reg(G): Launched on January 31, 2024, this scheme has AUM of Rs 151 crore. Its returns since inception is 16.19%.

– Kotak Healthcare Fund-Reg(G): Another fund launched on January 31, 2024 has an AUM of Rs 250 crore as on this date. It is benchmarked against Nifty Pharma TRI. The fund predominantly invests in pharmaceuticals & biotechnology, health services and insurance.

– Quant Healthcare Fund-Reg(G): This scheme was launched in July 2023.

– WOC Pharma and Healthcare Fund-Reg(G): The scheme was launched on February 6, 2024 and had AUM of Rs 102.69 crore as on February 29.

Rushabh Sheth, Co-CIO, Karma Capital remains bullish on pharma as a sector, he told ET Now calling it a structural story for the next three to five years, especially the domestic healthcare side.

Equity mutual fund schemes witnessed net inflows of Rs 26,865.78 crore in February riding on strong traction for thematic funds which saw net inflows of Rs 11,262.72 crore during the month.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)