Why Pharma Mutual Funds may be the Best Way to Earn Good Money?

Rishit Kakkar
Jul 4 · 3 min read

When you fall sick, what’s the first thing that comes into your head? Eating popcorn with extra caramel on top of it? Is that what your heart tells you to do? Definitely, not! You are almost out of your senses even in trivial cases of sickness, such as pollen allergy or seasonal viral infection. The word “Doctor” bangs in your head like a hummingbird’s pecking, driving you crazy and out of your sane skin. And until you pop a pill or two, the illness doesn’t leave your body.

This case merely covers the importance of the pharma sector and pharma mutual funds. In reality, better medicines are the need of the hour, and to cater to this need many multinational companies are pouring billions of dollars into the research and development. Hence, there is a huge scope for growth and wealth building in the pharma sector, which can be conveniently achieved by investing in a top performing pharma mutual fund.

India and the Pharma Sector

India is considered as one of the largest exporters of medicines in the world. The past two year data revealed that our country did $130 billion of business annually in the pharma sector alone, that too in the international market. The US is the biggest consumer of Indian medicines, precisely those which have natural ingredients in them. As a result of expansion of domestic Indian brands, the pharma sector in India has flourished with full force in the last seven years. Experts assume that by 2035, India will roughly gain 25% CAGR in this sector in the exports segment alone, plus there are speculations of a massive rise in the domestic supply of the homemade medicines.

Why is Pharma Sector Flourishing in India?

Though the fact that the Indian pharma sector is at a boom is a positive thing for our economy at large, but the circumstances that are responsible for this growth aren’t very pleasant. In the last 10 years, there has been a massive increase in the number of heart patients and those who are suffering from diabetes. The increasing population has a direct connection to these lethal diseases, as India is home to one of the largest number of cars per family. The theory is simple — more cars means more pollution and ultimately depletion of the quality of human life. And it doesn’t end here. The increasing water pollution to the increasing industrialisation is also a major contributor in the depletion of health.

How Pharma Mutual Funds can be helpful?

The pharma sector is at a boom in our country. Though the quality of life is at high risks, but there is some good news too. Since the pharma companies are accelerating in the market, there is an immense scope for growth-oriented investments. You can invest in the best pharma mutual funds for a long period, say four to five years, and achieve all your objective in an efficient manner. If you are being sceptical as to which fund or funds you should choose, then you can use the following recommendations: -

  • SBI Healthcare Opportunities Fund (G)
  • TATA India Pharma & Healthcare Fund (G)
  • Reliance Pharma Fund (G)
  • DSP Healthcare Fund (G)
  • UTI Healthcare Fund (G)

These funds are some of the best choices available in the country. However, this is not an exhaustive list and the contestants of the list may change as per time and the experts’ recommendation. Hence, it is advised that you stay abreast with the latest bulletin and keep your financial advisor updated with any movements that you may make for your financial plan.

In Conclusion

By reading the above article, it might be clear now that investing in the pharma sector is one of the best opportunities that you have to achieve good growth in your wealth. Take shelter under the top pharma mutual funds, and make your life smoother by dabbing it in high returns. For further clarification, take the guidance of your financial advisor.

Rishit Kakkar

Written by

Rishit Kakkar is a financial expert having more than 5-years of experience as a mutual fund analyst and suggest the best SIP investment plans to the investors.

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