Top 10 Pharma and Healthcare funds to invest in 2024

As the investment landscape evolves, the healthcare and pharmaceutical sectors continue to stand out as robust opportunities for investors seeking both growth and stability. Remember the tough times of COVID-19; these pharmaceutical companies developed the vaccine and helped millions of lives not only in India but around the world.

This can be taken as evidence that even in the downturn, the healthcare and pharma sectors prove to be real friends, not only for us but also for investment health.

Comparing the Nifty50’s fall during the COVID-19 downturn, it fell almost 40% from its high of 12430 to 7511, while the Nifty Pharma fell 55%. Despite this fall, it again surged around 200% and is currently trading at its all-time high levels.

What are Pharma and HealthCare Funds?

Pharma and healthcare mutual funds are investment vehicles that focus on companies operating in the pharmaceutical and healthcare sectors. These funds pool money from multiple investors to invest in a diversified portfolio of stocks or other financial instruments related to the pharmaceutical, healthcare, and biotechnology industries.

The primary objective of pharma and healthcare mutual funds is to provide investors with exposure to the pharmaceutical and healthcare sectors.

The healthcare and pharmaceutical sectors have consistently demonstrated resilience and innovation. With the global population ageing and increased awareness of health issues, these industries are expected to flourish.

Considering these factors, we will explore some of the best healthcare and pharma funds to invest in 2024.

Who Should Consider investing in these funds?

Long-Term Investors: Investors with a long-term investment horizon who seek capital appreciation over several years may find pharmaceutical and healthcare funds appealing.

Investors with a Bullish Outlook on Healthcare: Investors who are optimistic about the future of the healthcare and pharmaceutical industries may choose to allocate a portion of their portfolio to these funds.

Diversification Seekers: Investors looking to diversify their portfolios may consider pharmaceutical and healthcare funds to add a sector with its own unique risk and return profile. Diversification can help reduce overall portfolio risk by spreading investments across different industries.

Defensive Investors: Healthcare is often considered a defensive sector. During economic downturns, people tend to continue spending on healthcare, making it less susceptible to economic fluctuations. Investors seeking stability and resilience in their portfolios may find pharmaceutical and healthcare funds appealing during market uncertainties.

Thematic Investors: Those who are interested in thematic investing may choose pharmaceutical and healthcare funds to align with specific themes, such as advancements in medical technology, breakthrough drug development, or addressing global health challenges.

However, investors need to conduct thorough research, understand the risks associated with these sectors, and align their investment decisions with their overall financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.