Best Mutual Funds in Healthcare and Pharma to Watch in September 2024 – 3Y CAGR Basis

Investing in healthcare and pharmaceutical mutual funds is for investors looking to capitalise on the growth of the healthcare sector. With ongoing advancements in medical technology, an ageing population, and rising global health concerns, the healthcare and pharma industries can offer significant potential for long-term returns. Mutual funds in this sector provide investors with diversified exposure to various companies involved in pharmaceuticals, biotechnology, healthcare services, and medical devices, making them a compelling choice for those seeking to benefit from the sector’s expansion.

Healthcare and pharma mutual funds are designed to take advantage of the innovation and growth potential of companies developing new treatments, technologies, and solutions for improving health outcomes. These funds typically invest in leading pharmaceutical companies and healthcare providers that are at the forefront of research and development.

In this article, we will explore some of the best healthcare and pharma mutual funds in September 2024 in India based on the 3-year CAGR.

Best Pharma and Healthcare Sector Mutual Funds – 3Y CAGR Basis

Note: The best pharma and healthcare mutual funds list provided here are as of August 28, 2024. The funds are selected and sorted based on the 3Y CAGR.

Pharma and Healthcare Sector in India

The Indian healthcare market, valued at USD 110 billion in 2016, is projected to reach USD 638 billion by 2025. As of 2024, the sector stands as one of India’s largest employers, with a workforce of 7.5 million. The Indian hospital market, valued at USD 98.98 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2032, potentially reaching USD 193.59 billion by 2032. From FY18 to FY23, the Indian pharmaceutical industry experienced a CAGR of 6-8%, driven by an 8% increase in exports and a 6% growth in the domestic market.

Who Should Invest in Pharma and Healthcare Mutual Funds?

Individuals seeking long-term capital appreciation may find these funds appealing due to the sector’s potential for high growth driven by innovation and increasing demand for healthcare solutions. Given the volatility and risks associated with the healthcare and pharmaceutical industries, investors who are comfortable with higher risk levels and have a long-term investment horizon may benefit from the sector’s potential upside. However, as an investor, you must consider your investment objective and risk tolerance before picking a fund.

Factors to Check Before Investing in Pharma and Healthcare Mutual Funds

• Fund Performance and History: Review the fund’s historical performance, including its returns over various time periods, and compare it with benchmark indices and peer funds to assess its track record.
• Management Team and Expertise: Evaluate the experience and expertise of the fund manager and their team. A strong management team with a proven track record in healthcare and pharma investments can be a crucial factor in the fund’s success.
• Expense Ratio: Check the fund’s expense ratio, which affects your overall returns. Lower expense ratios are generally preferred, but they should be weighed against the fund’s performance and management quality.
• Investment Strategy and Holdings: Understand the fund’s investment strategy, focusing on pharmaceuticals, biotechnology, medical devices, or healthcare services. Review the fund’s holdings to ensure alignment with your investment goals.
• Risk Profile: Assess the fund’s risk profile and how it fits your investment strategy. Consider factors such as sector volatility, regulatory risks, and market conditions that could impact the fund’s performance.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.