HDFC Asset Management Company (AMC) the investment manager to HDFC Mutual Fund, has launched HDFC Pharma and Healthcare Fund. In a statement, the AMC said HDFC Pharma and Healthcare Fund is an open-ended equity scheme that will invest in pharma and healthcare-related companies with a bottom-up approach for stock selection.
The New Fund Offer opened today (September 14, 2023) and closes on September 28, 2023.
HDFC Pharma and Healthcare Fund will be managed by Nikhil Mathur, who is also a Senior Equity Analyst at HDFC AMC. The fund will aim to invest a core of its portfolio (> 80%) in pharma and healthcare-related companies. This includes basic industries like Pharmaceuticals, Hospitals, Healthcare Service Providers, Healthcare Research, Healthcare Analytics and technology, and Medical Equipment and supplies.
The Fund will seek to invest in companies which operate in a secular growth segment and/or gain market share due to unorganized-to-organized shift, superior execution, scale, better adoption of technology etc.
Why Pharma and Healthcare theme?
The AMC said that the pharmaceutical and healthcare theme offers a unique proposition that benefits from rising domestic healthcare spend and manufacturing leadership in global markets.
“Private healthcare spend has grown at a brisk pace in recent years, but there is considerable headroom given that healthcare spend as percentage of GDP is still low when compared to other emerging and developed economies,” the AMC said.
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Further, rising life expectancy, changing disease patterns, a higher share of the elderly population and insurance uptake would propel higher domestic healthcare spend in the long term, it added.
According to the statement, India holds the unique position of being the ‘pharmacy of the world’, boosted by supplies of vaccines and other therapeutics for the Covid-19 pandemic. Enabling factors such as the government’s PLI scheme, labour cost advantage and technical know-how should further boost India’s global competitive position.
Additionally, with ~ USD 98 billion worth of small molecule drugs going off-patent over the next five years provides a big opportunity for Indian pharma companies.
“We are delighted to introduce the HDFC Pharma and Healthcare Fund to our investors. At HDFC Mutual Fund, we have always endeavoured to be a one-stop solution for varied financial goals and have delivered a wide array of opportunities through our diverse product bouquet. HDFC Pharma and Healthcare Fund become the latest addition to our diverse set of offerings,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC AMC.
Commenting on the launch, Nikhil Mathur said “India will continue to command leadership in global pharmaceutical supplies on the back of low-cost manufacturing, ready pool of scientists and track record of meeting stringent quality requirements. Meanwhile, on the domestic market front, rising awareness towards health is a key growth driver for the long term.”
Disclaimer: The above content is for informational purposes only based on a press release by HDFC AMC. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.