The need of pharma industry is everywhere in the world. This sector may not have tremendous track record in the mutual fund industry, but it has never gone negative in its performance. Because the demand for medicines and healthcare services is on a steady growth, this sector showcases consistent possession in the market. The investors who are looking for exposure to the pharmaceutical sector must consider Reliance Pharma Fund for their portfolio. Launched in the year 2004, Reliance Pharma Fund-Growth is consistently delivering benefits in the long term. Benchmarked against S&P BSE Healthcare, this scheme being an open-ended pharmaceutical fund majorly invests in equities and equity-related securities of the companies falling in the healthcare industry. The main point to remember about this scheme is that it is best suited to the investors having long-term investment goals.
Performance Analysis:
Reliance Pharma Fund (Growth) has shown a stable performance to its investors during all market weathers. Every mutual fund plan is subject to market fluctuations due to which it faces high volatility over time. But, this scheme has landed its investors on a positive platform with handsome returns in the long-term investment tenure. The best performance of this fund is recorded at an annual rate of return being 118.6 percent in the year 2009-10. It has outperformed its benchmark by a significant margin in the three- and five-year trailing returns. The Reliance Pharma Fund NAV, i.e., its per unit value, is recorded at Rs. 123.764 as on June 06, 2017.
Portfolio Analysis:
The assets under management of this scheme amount to Rs. 1,369 crore as on April 30, 2017. The fund invests around 99.37 percent of the total capital in equity securities, while a handful portion in the debt and money market instruments. Furthermore, out of the total equity investments, the majority portion of around 47.14 percent is allocated in the stocks of large-cap pharmaceutical companies having the market capitalisation of Rs. 10,000 crore and more. Apart from investing in the healthcare sector, this fund also parks a little amount of its capital in financial and manufacturing industries for the purpose of balancing the portfolio diversification. The top holdings of Reliance Pharma Fund are:
1. Sanofi India
2. Lupin
3. Sun Pharmaceuticals Inds.
4. Cadila Healthcare
5. Max India
6. Dr. Reddy’s Lab
Hence, it is no wonder that Reliance Pharma Fund is a good bet for long-term investment plans. The past performance and the analysis make it clear that it has the potential to offer steady returns to its investors in a longer duration. This scheme is more beneficial as the expert fund managers of Reliance Mutual Fund take care of the efficiency of its portfolio. You can also grab the benefits and secure your financial future by investing in Reliance Pharma Fund SIP online. MySIPonline is one of the platforms providing online investment services with a wide range of best-performing funds and various online investment solutions.
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