DSP Mutual Fund has launched DSP Healthcare Fund, an open ended scheme investing in the healthcare and pharma sector. The fund would invest in healthcare and pharmaceutical companies with some portfolio allocation to foreign securities. The NFO is currently open for subscription and closes on November 26.
In a press release, the company said, “The fund aims to benefit from three major growth drivers in India – growing demand, export opportunities and a conducive policy environment. The Indian healthcare sector is witnessing growing demand, driven by rising incomes and affordability. Growing elderly population, changing disease patterns, rise in medical tourism and better awareness of wellness, preventive care and diagnosis are factors that are expected to contribute to the demand. Export opportunities are expected to increase after the bottoming out of the US pricing cycle, opening up of Chinese market, which is the second largest pharma market in the world, and dedicated R&D to create patented revenues in exports.”
The fund will also invest up to 25% in international healthcare stocks, especially large US companies.
Aditya Khemka and Vinit Sambre and Jay Kothari will co manage the fund.
Vinit Sambre, Head - Equities, DSP Investment Managers said, “India is expected to be part of the top three pharmaceutical markets in terms of consumption by 2030. Many of these Indian healthcare companies have a good long-term potential as they are focusing on R&D and are reducing their overheads with the results likely to reflect in their profitability over time. Government measures like Ayushman Bharat as part of a conducive policy are also expected to spur growth in the sector. Investors can also look to benefit from international healthcare exposure which may help in reducing portfolio volatility and could also help deliver better returns per unit of risk.”