Best Pharma Funds 2021 | Best Pharma Sector Stocks | Healthcare ETFs | Gunjan Grover - YouTube

Hello, this is Gunjan Grover and today we will talk about the top pharma & healthcare funds.

Which mutual funds have performed best in the healthcare sector.

I am also going to tell you about the Nifty Pharma Index and the new Nifty Healthcare index.

In may 2021, two new healthcare ETFs have been launched by Axis Mutual Fund and Icici Prudential AMC.

I will also share their details.

According to these companies, the increase in healthcare and lifestyle issues and due to this pandemic, the healthcare and pharma sector has a lot of potential for growth.

It is a little unfortunate but the healthcare shares have been performing well during the pandemic.

Well the demand is more and the supply is less.

Everywhere it was there in the news how there's a shortage of certain medicines, oxygen cylinders,icu beds.

It all sounded quite scary, especially when I got Covid too.

I tried to relax but even then, a little anxiety was there.

So I tried to distract myself and looked at all the products I have been using during Covid

and their share prices and their performance in the last 5 years.

Thankfully my symptoms were mild..but I did not take it lightly.

Immediately after getting the first symptoms, I did the rt-pcr test, and on the 6th day, I did the blood tests like CRP, D-Dimer, etc.

so that means using pathology labs like Dr Lalpath Labs, Metropolis, Thyrocare, etc.

I had immediatly consulted a doctor and started medication,

that means using hospitals like Apollo, Max, Fortis

and also through pharma companies like Cipla, Dr Reddy, Sunpharma etc.

I was constantly keeping a record of my temperature and oxygen levels and kept doing the 6 minutes walk test twice a day.

It is a must. Just read about it.

You can watch Dr KK Aggarwal's videos. They are quite helpful.

Anyway, that means using oximeters and thermometers and steamers. So companies like Nureca.

Apart from these, there were sanitizers, disinfectant sprays. So companies like Hindustan Unilever.

Vaccines, oxygen concentrators and cylinders, that thankfully I didn't require.

I have already shown in my previous videos how share prices of oxygen producing companies are sky rocketing

I also shared the post IPO performance of Nureca, that how shares of this healthcare and wellness products distribution company are continuously increasing after the Covid's 2nd wave.

If you want to watch these videos, don't forget to subscribe to my channel. Also don't forget to like this video.

Today we will talk about the entire pharma and healthcare sector.

So let's look at Nifty Pharma and Nifty Healthcare index first..

As you can guess from its name, Nifty Pharma index captures the performance of the pharmaceutical sector.

This index comprises of the top 10 pharma companies listed in NSE.

It was launched in 2005, although it's base date is 2001 and base value was 1000.

If we have a look at the chart of previous 5 years, then on 13th May, 2016, it was at 11,157.

From that date till march 2020, this index was not performing well.

If we compare this to Nifty, then from May 2016 to February 2020, Nifty was 55% up and Nifty Pharma index was 25% down, and then Covid happened.

Both of the indices tanked down, and then from March 2020 end onwards, recovery was seen in both of the indices, and they made new highs.

As of 30th April, 2021 Nifty Pharma Index is almost 21% up and Nifty is up by 87%(in the last 5 years).

If we have a look at the last 1 year, as of 30th April, 2021, Nifty is up by almost 58% and Nifty Pharma Index is up by 45%.

The P/E ratio of Nifty Pharma Index is 35.5 and dividend yield is 0.43.

If you want to know what exactly do these terms means, then you can watch my videos explaining these terms in simple words on my youtube channel.

Recently, Nifty has also launched its Healthcare Index, which not only includes the pharma companies, but also reflects the behaviour and performance of all the healthcare companies like hospitals, path labs, pharma companies, etc.

This index is made up of maximum 20 tradable, exchange listed companies.

It was launched on 18th November, 2020 and the base date was 1st April, 2005 with a base value of 1000.

As of 30th April, 2021, it has a P/E ratio of 38.29 and a dividend yield of 0.66.

It has given a 1 year return of 45%. This healthcare index has outperformed Nifty 50 in 6 of the past 10 years.

Now there are two healthcare Exchange traded Funds being launched in May 2021 by Axis Mutual Fund and Icici Prudential AMC.

These two ETFs will track the Nifty Healthcare Index, which will give the investors an exposure to the healthcare segment like pharma companies, hospitals, pathology labs, etc.

If you want to know more about investing in ETFs and how they work,  you can watch the "What are Exchange Traded Funds" on my youtube channel.

Now finally, let's talk about the top performing pharma and healthcare mutual funds.

Nippon India Pharma Funds is an 8 years old fund and has given an average annual return of 19.3% since its inception.

In the last 5 years, it has given 17.23% return pa and in the last 1 year, it has given 59.24% return.

Its expense ratio, which means the expenditure that goes from your pocket is 0.82% which is on the higher side.

Tata India Pharma & Healthcare fund has given 13.14% p.a. return in the last 5 years, and 53.06% in the last 1 year.

It's expense ratio is 1.19% which is very high.

UTI Healthcare fund has given 13.22% return in the last 5 years and 58.02% in the last 1 year. It's expense ratio is 1.79% that is really high.

SBI Healthcare Oppurtunities Fund has given 10.87% return per annum in the last 5 years and 59.58% in the last 1 year. It's expense ratio is 1.11% which is again high.

Hope all this information helps you choose the fund that is right for you. We are not recommending any stock or fund and all this is just for educational purpose. On that note, here's me Gunjan signing off. Bye Bye. Take care. Keep calm and invest on.