Top performing pharma funds
Pharma or the healthcare sector has been an underperformer since April 2015. This underperformance extended for almost five years till March 2020 and from there, it recapitulated.
The above graph shows the 15-year journey of Nifty Pharma index. As we can see, it has started recovering from March 2020. Further, it is yet to reach its previous all-time high of 13,831. Once this level is breached, we might witness a further rally in the Nifty Pharma index. Therefore, even if you have missed the recent rally of 77 per cent, there are still a lot more opportunities left for you. In this article, we have listed the top three pharma mutual funds.
|
Fund Name
|
Trailing Returns (in per cent)
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
20 Years
|
|
Nippon India Pharma Fund
|
57.50
|
19.08
|
8.11
|
15.25
|
19.56
|
|
UTI Healthcare Fund
|
57.40
|
13.23
|
4.29
|
12.97
|
13.39
|
|
SBI Healthcare Opportunities Fund
|
57.01
|
10.17
|
2.92
|
15.36
|
13.43
|
|
Fund Name
|
Rolling Returns (in per cent)
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Nippon India Pharma Fund
|
21.49
|
18.99
|
20.36
|
19.99
|
|
UTI Healthcare Fund
|
13.63
|
13.28
|
15.08
|
14.64
|
|
SBI Healthcare Opportunities Fund
|
14.56
|
13.24
|
16.17
|
15.42
|
|
Period: August 3, 2005 to August 3, 2020
|
From the above two tables, we can say that in terms of returns, Nippon India Pharma Fund tops the chart, followed by UTI Healthcare Fund and SBI Healthcare Opportunities Fund.
|
Fund Name
|
Risk Statistics
|
|
Sharpe Ratio
|
Sortino Ratio
|
Alpha
|
Beta
|
Standard Deviation
|
|
Nippon India Pharma Fund
|
0.63
|
1.42
|
7.57
|
0.85
|
20.87
|
|
UTI Healthcare Fund
|
0.36
|
0.76
|
1.91
|
0.89
|
21.75
|
|
SBI Healthcare Opportunities Fund
|
0.24
|
0.46
|
-0.58
|
0.88
|
21.74
|
Even in terms of risk and risk-adjusted returns metrics, Nippon India Pharma Fund came at the top, followed by UTI Healthcare Fund and SBI Healthcare Opportunities Fund.
One thing to note before investing in pharma funds is that, do not allocate these to any of your financial goals. They should be purely used for opportunity grabbing purposes. Further, if you are not well-versed with sectors that the sectoral fund invests in, then it is better to avoid such funds and invest in a diversified equity fund.