Sector-based mutual funds are generally recommended to the experienced investors because a detailed analysis of a particular sector is required to determine the growth in future. The pharmaceutical sector is the one which won’t be on the bucket list of most of the investors. Though according to the experts, the pharmaceutical mutual funds are all set to achieve new heights after a rough year in 2017. So, it’s time to connect with us at MySIPonline and know the best Pharma Sector fund for yourself.
But, before that let’s know a brief about the same.
Many mutual fund advisors do not buy the argument that the sectors would bounce back soon. They don’t want their clients to take risk and therefore they have asked them to wait for these sectors to show some signs of revival before investing in them. “Pharma is a defensive sector and it will do well eventually. The IT sector has reasonable valuations. There are fund managers who would want to take a contrarian bet on these sectors but for mutual fund investors, it is better to maintain a distance,” says Karthik S ..
According to the experts at MySIPonline, Pharma sector is all set to perform at its best in the next 2-3 years due to its strong product pipeline and increasing product launches over the next couple of years by Pharma Companies who will counteract the price erosion effect in the base portfolio.
The highly experienced customer-support staff at MySIPonline provides the schemes to the investors which can generate the best return according to the risk factor, investment horizon, time period, and other convenience.
But, before that let’s know a brief about the same.
What Is a Sector Fund?
A sector fund is a mutual fund in which the corpus is invested in the companies that operate in a particular sector of the economy. They allow investors to take benefits of the positive market in a particular industry category like IT, Finance, Technology, Pharmaceutical, etc. Generally, when a sector is on a rise, all the companies related to that sector are on a rise, and vice-versa. In such conditions, investor can take the benefit of sector funds if he is well aware of the market trends.Pharmaceutical Sector Mutual Funds
Mutual funds which invest their corpus in equity-related instruments of medicine, health-care, and pharmacy-related companies are called pharmaceutical sector mutual funds. Investing in sector fund is always a riskier task, and it needs a thorough market study to get healthy returns out of it. Last few years have been rough for Pharmaceutical Sector mutual funds, but they have the potential to provide decent returns in the long term.
Performance of Pharma Funds
On an average, Pharma funds have provided -8.32% return in last one year. Both domestic and foreign factors have been responsible for this. Pharmaceutical companies have been under stress for quite a some time, particularly companies with high exposure in the US market like Lupin Limited. As these companies face headwinds, the pharma stock prices have halved to nearly 40% over the past three years. A highly experienced financial expert should be consulted to pick the best pharma fund.Many mutual fund advisors do not buy the argument that the sectors would bounce back soon. They don’t want their clients to take risk and therefore they have asked them to wait for these sectors to show some signs of revival before investing in them. “Pharma is a defensive sector and it will do well eventually. The IT sector has reasonable valuations. There are fund managers who would want to take a contrarian bet on these sectors but for mutual fund investors, it is better to maintain a distance,” says Karthik S ..
Top Pharma Funds of India
- S&P BSE Healthcare
- Reliance Pharma Fund
- SBI Pharma Fund
- Tata India Pharma & Healthcare fund
According to the experts at MySIPonline, Pharma sector is all set to perform at its best in the next 2-3 years due to its strong product pipeline and increasing product launches over the next couple of years by Pharma Companies who will counteract the price erosion effect in the base portfolio.
The highly experienced customer-support staff at MySIPonline provides the schemes to the investors which can generate the best return according to the risk factor, investment horizon, time period, and other convenience.
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