In an endeavour to invest in the pharma and healthcare services sector, Aditya Birla Sun Life Mutual Fund has launched an open ended equity scheme, the Aditya Birla Sun Life Pharma & Healthcare Fund. The fund will be managed by Dhaval Shah.
The fund will not be restricted to pharma and healthcare space alone. With end number of opportunities grabbling eyeballs in the market, the fund will look into sectors like hospitals, diagnostics, wellness business and manufacturing services industry.
The scheme can also invest in equities of listed overseas companies, in line with the RBI and SEBI guidelines.
Sharing a few insights on investing in the healthcare sector, A Balasubramanian, CEO, Aditya Birla Sun Life AMC said, “The sector has been a long-term out performer over a 10-year period, except in the past two to three years. The under performance of the sector in the last three years was due to compliance issues coming from abroad and pricing pressures.”
“We believe this risk is already factored in the prices, given the strong balance sheet and export potential of companies in the sector. Poised for a strong rebound, there is opportunity in the coming cycle to take position given the attractive valuations and the potential growth in the sector,” added Balasubramanian.
“To add to novelty, we also have ability to invest in innovators, patent holders & specialty instrument makers in global markets,” added A Balasubramanian.
The Indian pharma industry is expected to be a $100 billion industry by 2030, which is why the Aditya Birla Sun Life Mutual Fund came up with this pharma and healthcare fund.
The domestic pharma is also expected to grow at 10-12 per cent per year.
With government spending on public healthcare schemes like Ayushman Bharat, The fund house believes that the growing dispersion of increase in expenditure will act as a boom for the healthcare sector.