“Indian healthcare industry has been growing at a Compounded Annual Growth Rate of around 22% since 2016. At this rate it is expected to reach USD 372 billion in 2022. Healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment.” – NITI Aayog, Investment opportunities in the Indian Healthcare Sector, March 2021.
“The Indian healthcare market, which was valued at US$ 110 billion in 2016 is now projected to reach US$ 638 billion by 2025. The healthcare sector, as of 2024, is one of India’s largest employers, employing a total of 7.5 million people.” IBEF Report. The information in these two paras clearly lay down the macro background against which the Indian healthcare sector is expected grow. According to the offer document, Bajaj Finserv Healthcare Fund has floated an NFO for an open-ended equity scheme based on the pharmaceutical, healthcare and allied themes.
Features of the healthcare fund
Category: Equity, Sectoral—Pharma
NFO Opening Date: December 10, 2024
NFO Closing Date: December 20, 2024
Listing Date: December 30, 2024
Fund Type: Open-ended fund
Opening NAV: Rs 10
Minimum Investment Amount: Rs 500. The investment can be raised through multiples of Rs 500.
“Very High” on the risk-o-meter
“This scheme seeks to generate long term capital appreciation by predominantly investing in equity and equity-related securities of pharma, healthcare and allied companies,” mentions the product literature. As is expected from any equity-linked sectoral fund, those with a fair risk appetite could consider investing in such a fund. The fund ranks “Very High” on the risk-o-meter. The risk-o-meter has been introduced following a stipulation by market regulator SEBI and indicates the risk of a mutual fund scheme at a given point of time.
As is the normal practice, one can invest in Bajaj Finserv Healthcare Fund both through SIP (Systematic Investment Plan) and Lumpsum route. According to reports, right now there are more than 25 different pharma and healthcare mutual funds in the Indian market. The fund managers are Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary. The scheme will be benchmarked against the BSE Healthcare Total Return Index (TRI).
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Many common investors consider the healthcare sector as an ‘evergreen sector’. The NFO (New Fund Offer) ends on December 20, 2024 and you must consider the scheme carefully since this industry is a promising one. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
