DSP Mutual Fund launches Healthcare Fund

DSP Investment Managers has announced the launch of new fund - DSP Healthcare fund. This is an open-ended scheme investing in the healthcare and pharma sector.

Kalpen Parekh, President of DSP Investment Managers said this is an interesting time for the Indian healthcare sector and China, which is the second largest pharma market, is also opening up to Indian pharma companies.

“India is expected to be one of the top three pharmaceutical markets (by consumption) by 2030 and Ayushman Bharat to be instrumental in creating volume growth. Indian investors can take advantage of the potential in the space with an added element of global diversification to manage volatility,” Parekh said, adding the fund would be investing 10-20% in large-cap, 30-40% in mid cap and small cap, respectively and up to 25% in US healthcare stocks, thus giving investors access to international diversification as well.

“If you take CAGR returns since Jan 2009, S&P BSE Healthcare TRI (Total Return Index) stands at 18.9% and Nifty 50 TRI is at 15.4%,” Parekh said.

The NFO, which opened on November 12, will close on November 26, 2018. Vinit Sambre, Head-Equities, DSP Investment Managers said, “India is expected to be part of the top three pharmaceutical markets in terms of consumption by 2030. Many of these Indian healthcare companies have a good long-term potential as they are focusing on R&D and are reducing their overheads with the results likely to reflect in their profitability over time. Government measures like Ayushman Bharat as part of a conducive policy are also expected to spur growth in the sector. Investors can also look to benefit from international healthcare exposure which may help in reducing portfolio volatility and could also help deliver better returns per unit of risk.”