Why the Healthcare Sector is a Growing Field for Investment Opportunity
Have you ever thought, why the healthcare sector is gaining attention as a top investment avenue? With increasing demand for Medical services, breakthrough innovations in Pharmaceuticals, and an Aging Population, Healthcare has become one of the most promising sectors for stable and continues returns.
Top Healthcare Mutual Funds in India allow investors to take advantage of these trends by investing in companies that lead the way in healthcare advancements. Specially, after Covid, what you think readers?
In this article, we’ll discuss the Best Healthcare Mutual Funds, you can invest in for 2024, find and evaluate their performance, and explain why they can be a solid long-term investment option. Whether you’re a seasoned investor or just getting started, this article will give you actionable insights.
Why Healthcare Mutual Funds Are a Stable Investment?
Before we approach into specific mutual funds, it’s important to understand why the healthcare sector is considered a stable investment.
1. Ever-Increasing Demand:
People will always need healthcare, irrespective of economic conditions. This makes it a “defensive sector,” meaning it tends to perform well even during economic downturns.
2. Government and Global Support:
Governments worldwide are investing heavily in healthcare infrastructure, which adds stability to this sector. In Covid time, we all saw what conditions of health infrastructure and advancement. So, healthcare sector is in the priority of Indian government. Many such schemes like – “Ayushman Bharat– to give each person of poor family have free treatment upto 5 Lakh Rupees.”
3. Technological Advancements:
From AI in diagnostics to breakthroughs in biotechnology, healthcare companies are at the forefront of innovation. This keeps the sector resilient and progressive.
If you’re looking for a sector that promises growth and stability, pharma mutual funds might be your best bet to greater your return.
Best Healthcare Mutual Funds in India for 2024
Now that we know why healthcare is such a promising sector, let’s look at the Best Healthcare Mutual Funds in India for 2024. These funds have consistently performed well and are expected to offer good returns in the coming years.
1. ICICI Prudential Pharma Healthcare and Diagnostics Fund
- 3-Year CAGR: 22.96%
- Expense Ratio: 1.08%
- Why Invest: This fund focuses on the healthcare, pharma, and diagnostics sectors. It has shown impressive returns over the past three years, making it a stable investment.
2. SBI Healthcare Opportunities Fund
- 3-Year CAGR: 22.58%
- Expense Ratio: 0.92%
- Why Invest: A well-balanced fund that invests in a diversified portfolio of healthcare-related companies. It has consistently outperformed other sector funds.
3. Tata India Pharma & Healthcare Fund
- 3-Year CAGR: 21.61%
- Expense Ratio: 0.77%
- Why Invest: This fund invests primarily in the pharmaceutical and healthcare service sectors. It has a low expense ratio and delivers solid long-term returns.
4. DSP Healthcare Fund
- 3-Year CAGR: 21.07%
- Expense Ratio: 0.58%
- Why Invest: Known for investing in small and mid-cap healthcare companies, this fund offers high growth potential while maintaining a low expense ratio.
5. UTI Healthcare Fund
- 3-Year CAGR: 20.53%
- Expense Ratio: 1.29%
- Why Invest: UTI’s healthcare fund invests across various segments of the healthcare industry, offering diversification and a solid track record of returns.
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Performance Analysis of Best Performing Healthcare Mutual Funds
Let’s begin the performance of these top funds to help you make an informed decision. Below is a comparison table showcasing the performance of these funds over the last five years:
| Fund Name | 5-Year Return (%) | Expense Ratio (%) |
| ICICI Prudential Pharma Healthcare Fund | 29.22% | 1.08% |
| SBI Healthcare Opportunities Fund | 26.68% | 0.92% |
| Tata India Pharma & Healthcare Fund | 26.40% | 0.77% |
| DSP Healthcare Fund | 25.50% | 0.58% |
| UTI Healthcare Fund | 24.60% | 1.29% |
As you can see, all the top healthcare mutual funds have shown strong performance, with returns consistently above 20% over the last five years. The low expense ratios further make these funds an attractive investment option.
How to Invest in Healthcare Mutual Funds
Investing in Best Healthcare Mutual Funds in India is simpler than you might think. Here’s a step-by-step guide you can follow today:
1. Do Your Research
Before investing, always research various funds, their historical performance, and expense ratios. Websites like AMFI or apps like Groww and Zerodha can provide a good starting point.
2. Set Your Financial Goals
Are you looking for short-term gains or long-term wealth accumulation? Defining your financial goals will help you pick the right fund.
3. Start a SIP (Systematic Investment Plan)
SIPs allow you to invest small amounts at regular intervals, reducing the risk of market volatility. Most of the top funds mentioned above allow SIPs starting as low as INR 500.
4. Assess Your Risk Appetite
Healthcare mutual funds are sector-specific, which means they are riskier than diversified funds. Ensure that the level of risk matches your financial profile.
5. Keep a Long-Term View
Pharma mutual funds usually perform better over the long term. Patience is key if you want to maximize your returns.
Conclusion
Investing in Healthcare Mutual Funds in India offers you a unique opportunity to benefit from the ever-growing healthcare sector. Whether you’re a risk-averse investor or someone looking to diversify your portfolio, healthcare mutual funds provide a balanced mix of growth and stability. Are you ready to make healthcare a part of your investment strategy? If yes, now is the best time to into this promising sector.
Frequently Asked Questions (FAQs)
Which is the best pharma mutual fund in India?
The best pharma mutual fund can vary, but funds like DSP Healthcare Fund and SBI Healthcare Opportunities Fund are often considered strong performers in the sector.
Which mutual fund is best for the next 5 years?
Equity mutual funds like Mirae Asset Emerging Bluechip Fund and Axis Bluechip Fund are considered good options for a long-term horizon of 5 years due to their consistent performance.
What is the top rated healthcare mutual funds?
The DSP Healthcare Fund is among the top healthcare funds in India, providing good returns by investing in healthcare and pharma sectors.
Which mutual fund has the highest return in the last 5 years?
Parag Parikh Flexi Cap Fund and Axis Bluechip Fund have delivered some of the highest returns in the last 5 years.
Which mutual fund is best to invest in 2024?
For 2024, funds like Mirae Asset Large Cap Fund, Axis Midcap Fund, and SBI Small Cap Fund are recommended based on their strong past performances and growth potential.
Which mutual fund gives 20% return?
Equity mutual funds with high-risk exposure, such as SBI Small Cap Fund and Mirae Asset Emerging Bluechip Fund, have historically provided returns around 20% but can be volatile.
Which SIP gives 40% return in India?
Achieving 40% return through SIPs is rare and risky. However, funds like Tata Digital India Fund and ICICI Prudential Technology Fund have occasionally delivered such returns during tech sector booms.
Which mutual funds give 30% return?
ICICI Prudential Technology Fund and Mirae Asset Tax Saver Fund have previously provided returns around 30%, especially during bullish phases in the market.
Which is the rank 1 mutual fund in India?
There isn’t an official rank 1, but Mirae Asset Large Cap Fund and Axis Bluechip Fund are highly rated due to their strong performance.
What funds to invest in 2024?
For 2024, consider investing in diversified funds like ICICI Prudential Bluechip Fund, SBI Focused Equity Fund, and Parag Parikh Flexi Cap Fund.
Which are the top 3 mutual funds in India?
The top 3 mutual funds based on recent performance are Axis Bluechip Fund, Mirae Asset Large Cap Fund, and Parag Parikh Flexi Cap Fund.
Which bluechip fund is best?
Axis Bluechip Fund and Mirae Asset Large Cap Fund are considered some of the best bluechip funds in India due to their consistent performance.
What is the most successful mutual fund?
Funds like SBI Small Cap Fund and Mirae Asset Emerging Bluechip Fund are considered successful due to their long-term high returns and consistent growth.
Which SIP is best for the highest return?
For high returns, SBI Small Cap Fund and Axis Midcap Fund SIPs have delivered strong returns in the past, but they come with higher risk.
Which is the best-performing mutual fund in the last 25 years?
HDFC Equity Fund and Reliance Growth Fund (now Nippon India Growth Fund) have historically been some of the best-performing mutual funds over a long-term period of 25 years.