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The pharma sector was lagging in early 2014, but has been performing better since the Modi government has taken centre stage. All thanks to Foreign Direct Investments and the Make in India Project, now all Indian and foreign companies have spread their operations in India and are giving the sector a major push. The continuous push and growth has resulted in healthy march of the pharma companies, thereby resulting in attracting investors to invest in Pharma funds.
SBI Healthcare Opportunities Fund, erstwhile known as the SBI Pharma Fund, is one of the leading pharma fund schemes which is attracting the attention of investors since its inception. The SBI Healthcare Opportunities fund offers the investors with the opportunity to appreciate their investment in the long-run. The capital appreciation is earned by investing the investor’s capital in a well-diversified portfolio of equity and equity securities in the Healthcare space.
Also known as SBI Healthcare Opportunities Fund, this fund is aiming to provide growth and consistent returns to its investors. SBI Pharma Fund is a mutual fund scheme intended for investors who are looking for opportunities to invest in pharmaceutical sector and companies thereby. The fund promises good returns on a 3 to 5 year horizon and is best for investors who are looking for moderate risk opportunities to park their surplus. Following is a detailed overview of the SBI Healthcare Opportunities Fund.
Click here to overview of the SBI Healthcare Opportunities Fund
The SBI Pharma Fund has been performing competitively and has been offering good returns to the investors. The fund is seen outperforming its benchmark, and crossing its BSE Healthcare index across various timeframes like 1 year, 3 years and 5 years. The historic study about the fund performance points out that the SBI Pharma Fund has outperformed its competitors, not only in higher returns, but also in consistent returns.
The historic study of the SBI Pharma Fund suggests that returns earned in 1 year have been exceeding its benchmark almost 2/3rd times in the past 5 years. The fund holds powerful top holdings like Sun Pharmaceuticals Limited, Lupin Limited etc. These holdings have been the top holdings of SBI Healthcare Opportunities Fund and are top grocers of the pharma sector. Following is a snapshot of the performance of the SBI Pharma Fund
| Particulars | Performance in last ONE year | Performance of last 3 Years | Performance of last 5 Years | Performance of the fund since Inception (14/07/1999) |
|---|---|---|---|---|
| SBI Healthcare Opportunities Fund | -4.98 Percent | -7.19 Percent | 3.68 Percent | 14.14 Percent |
| S & P BSE Healthcare TRI (Scheme Benchmark) | -7.44 Percent | -5.47 Percent | 2.93 Percent | 12.71 Percent |
| S & P BSE Sensex TRI (Additional Benchmark) | 12.56 Percent | 14.83 Percent | 10.64 Percent | 13.51 Percent |
(data courtesy: www.sbimf.com)
Performance of the current value of investment: Investment amount Rs. 10,000
| Particulars | Performance in last ONE year | Performance of last 3 Years | Performance of last 5 Years | Performance of the fund since Inception (14/07/1999) |
|---|---|---|---|---|
| SBI Healthcare Opportunities Fund | Rs 9502.00 | Rs 7997.76 | Rs 11980.52 | Rs 140851.96 |
| S & P BSE Healthcare TRI (Scheme Benchmark) | Rs 9256.00 | Rs 8449.55 | Rs 11550.54 | Rs 109444.68 |
| S & P BSE Sensex TRI (Additional Benchmark) | Rs 11256.00 | Rs 15129.00 | Rs 16574.84 | Rs 126003.01 |
Now that we have seen the overview and performance of the SBI Pharma Fund, let us now see what the top holdings under this fund are. It is important to know where your money is being invested under this fund. The following table illustrates the top holdings of SBI Healthcare Opportunities Fund
| Name of the Stock | % of total AUM |
|---|---|
| Divi’s Laboratories Limited | 10.72% |
| Lupin Limited | 10.13% |
| Aurobindo Pharma Limited | 9.53% |
| Dr. Reddy’s Laboratories Limited | 9.42% |
| Cipla Limited | 8.67% |
| Strides Pharma Science Limited | 7.59% |
| Sun Pharmaceutical Industries Limited | 6.73% |
| Alkem Laboratories Limited | 5.04% |
| Torrent Pharmaceuticals Limited | 4.33% |
| Abbott India Limited | 3.98% |
SBI Pharma Fund is best suited for which investor?
Investment in SBI Pharma Fund is best suited for investors who are seeking: Long term capital appreciation Equity investment in Healthcare Sector
What is the risk profile of this fund?
The risk profile of the SBI Pharma Fund is High. So investors must understand that their investment is at high risk under this fund scheme.
What is the entry load for the SBI Pharma Fund Scheme?
The entry load is not applicable on the scheme.
What is the exit load for the SBI Pharma Fund Scheme?
The terms of exit load under the SBI Pharma Fund Scheme is as under: 0.5% in case the redemption is within 15 days from the date of allotment, NIL in case the exit is after completing 15 days from the date of allotment.
Who can invest in the scheme?
Prospective investors who can invest in the scheme are as under: Individual (Resident Indian above the age of 18 years) Minor through parents or legal guardian Companies Public sector undertakings Religious and Charitable Trusts Partnership Firms A Hindu Undivided Family through its Karta Banks and Financial Institutions Non-Resident Indians Persons of Indian Origin Foreign Institutional Investors registered with Securities and Exchange Board of India on full repatriation basis Qualified Foreign Investor Foreign Portfolio Investor Army / AirForce / Navy / para-military forces International Multilateral Agencies approved by Indian Government / Reserve Bank of India A mutual fund through its schemes, including funds of funds scheme.
What are the mode of applying for the SBI Pharma Fund Scheme?
The scheme allows applying for two options namely: Direct Plan and Regular Plan. Following are the ways to apply for the plan-
Investors wishing to invest directly in the plan must mention ‘Direct Plan’ on the application form against the scheme name. Similarly, they must mention ‘Direct Plan’ in the ARN column of the application form.
Investors who are investing in the plan through distributor or agent will go through ‘Regular Plan’ Channel.
What if I forget to mention the investment type?
The SBI Pharma Fund scheme offers 2 investment type namely: Growth option and Dividend Option. If an investor or distributor forgets to mention the investment type, then the default option shall be considered as ‘Growth Option’.
