The Nifty 50 index reclaimed the 23,350 mark on Friday, March 23, 2025, showing signs of resilience and gaining ground for the 5th consecutive session as of 3:23 PM. While the broader market sentiment has remained optimistic this week, certain sectors have outperformed significantly, particularly the Nifty Pharma and Nifty Healthcare indices.
As of 3:23 PM on Friday, the Nifty Pharma index was up 1.14% for the day. More notably, it has registered a weekly gain of over 6%, making it the index’s strongest weekly performance since March 2022, when it recorded a 6.34% rise. This trend suggests growing investor interest in the pharmaceutical space, likely driven by earnings expectations, sectoral tailwinds, and defensive allocation amid market volatility.
So far in March, the Pharma index has risen by 9.25%, indicating strong month-to-date momentum.
Alongside pharma, the Nifty Healthcare index has also shown impressive strength. With a weekly gain of 7.24%, it has logged its best weekly performance. As of March 21, its month-to-date gain stands at 10.53%, reflecting strong investor sentiment across healthcare and allied segments.
In light of this strong sectoral performance, mutual funds focused on healthcare and pharma have also posted notable returns.
Below are 5 mutual funds from the sectoral mutual fund that have gained significantly in March 2025:
Mutual Fund | AUM(in ₹cr) | Expense Ratio (%) | NAV in ₹ | Return (%) |
HDFC Pharma and Healthcare Fund | 1,468.7 | 2.1 | 15.93 | 9.34 |
DSP Nifty Healthcare ETF | 9.1 | 0.19 | 138.81 | 8.92 |
WOC Pharma and Healthcare Fund | 271.4 | 2.39 | 12.74 | 8.77 |
Mirae Asset Healthcare Fund | 2,441.1 | 1.96 | 36.27 | 8.32 |
Kotak Healthcare Fund | 379.9 | 2.39 | 12.78 | 8.13 |
Note: Data is as of March 20, 2025 and it’s of regular funds.
The top-performing fund among the list has delivered returns of over 9% during the month, reflecting the ongoing investor enthusiasm around the pharma and healthcare space.
While the recent rally in pharma and healthcare indices may be driven by a confluence of factors, including favourable sector outlook, policy support, or defensive rotation, it highlights the importance of sector-based diversification. Sectoral mutual funds, though more concentrated in nature, may offer exposure to such themes for investors who wish to track specific trends in the market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 21, 2025, 3:48 PM IST
Team Angel One
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