PGIM India Healthcare Fund NFO: A prescription for growth in India's healthcare sector
Investing in your health and your portfolio, a look at PGIM India Healthcare Fund.
PGIM India Mutual Fund has launched the PGIM India Healthcare Fund, an open-ended equity scheme focused on the dynamic and growing healthcare and pharmaceutical sectors. The fund, benchmarked against the BSE Healthcare TRI, offers investors the chance to benefit from India’s burgeoning healthcare industry, which is supported by low costs, innovation, growing medical tourism, and increased health awareness.
The New Fund Offer (NFO) is open for subscription from November 19, 2024, to December 03, 2024, with the scheme reopening for continuous sale and repurchase on December 11, 2024.
Features of the PGIM India Healthcare Fund
- Focused Investment Theme
- Aim to invest at least 80 per cent in pharmaceutical and healthcare companies.
- Up to 20 per cent allocation in other equities, debt, money market instruments, REITs, InvITs, and foreign securities.
- Diversified Exposure
- Includes healthcare services (diagnostics, hospitals, pharmacies) and manufacturing (medical devices, speciality chemicals, APIs).
- Emerging Trends
- Capitalises on AI-based diagnostics, telemedicine, preventive healthcare, and med-tech innovations.
- Strong Structural Tailwinds
- Government spending on healthcare is projected to reach 2.5 per cent of GDP by 2025.
- Rising demand from an ageing population, medical tourism, and health insurance adoption.
- Entry and Exit Details
- Minimum investment: Rs 5,000 for the initial purchase.
- Exit load: 0.50 per cent for redemption within 90 days; NIL after 90 days.
PGIM India Healthcare Fund Details
- Benchmark: BSE Healthcare TRI.
- Fund Managers:
- Equity: Anandha Padmanabhan Anjeneyan, Vivek Sharma, and Utsav Mehta.
- Debt: Puneet Pal.
- Investment Process: Combines top-down and bottom-up approaches with a focus on fundamentals like management quality and financial performance.
- SIP Option: Start with as little as Rs 1,000 per instalment (minimum of 5 instalments).
Management Comments
Ajit Menon, CEO, PGIM India Asset Management, remarked: "India’s healthcare sector presents a compelling investment opportunity, supported by robust structural trends like innovation, rising health awareness, and medical tourism. This fund allows investors to align their portfolios with a resilient and evergreen theme."
Vinay Paharia, CIO, PGIM India Asset Management, added: "The healthcare sector benefits from stable domestic demand, export potential, and the global 'China+1' strategy. We believe this fund can provide long-term capital appreciation while managing risks effectively."
Anandha Padmanabhan Anjeneyan, Senior Fund Manager - Equities, emphasized: "Healthcare’s relatively inelastic demand and superior pricing power make it an attractive option, especially during inflationary environments, offering investors a stable compounding opportunity."
Should You Invest?
The PGIM India Healthcare Fund is ideal for investors seeking:
- Sector-Specific Growth: Exposure to one of India's most resilient and promising sectors.
- Long-Term Potential: Benefit from healthcare’s structural growth drivers, including government policies and rising FDI inflows.
- Portfolio Diversification: Add a unique theme to their investment portfolio, relatively insulated from economic downturns.
However, investors should note:
- The fund’s returns are subject to sector-specific risks, including regulatory changes and global pharmaceutical trends.
- A minimum investment horizon of 5-7 years is recommended for optimal results.
Disclaimer: The article is for informational purposes only and not investment advice.