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Aditya Birla Sun Life Pharma & Healthcare Fund: NFO review


Aditya Birla Sun Life Mutual Fund has launched a new sectoral scheme called Aditya Birla Sun Life Pharma & Healthcare Fund. As the name suggests, the new scheme will invest in pharma and healthcare services sector. The new fund offer (NFO) will open for subscription on June 20 and it will close on July 4.

The fund will be managed by Dhaval Shah and will be benchmarked against S&P BSE Healthcare TRI (Total Return Index). Apart from pharma and healthcare space, the fund will also invest in large opportunities in sectors like hospitals and diagnostics, wellness businesses, or the global contract research and manufacturing services industry (CRAMS).

The fund house believes that there are a lot of opportunities in the healthcare sector and that is why they have come up with the new scheme. The increased government spending on public healthcare through schemes like ‘Ayushman Bharat’, growing penetration of health insurance, higher life expectancy and increasing spends towards healthcare and wellness will act as a stimulus for growth in the sector, the fund house believes.

Should you invest?

The industry has nine schemes investing in the pharma sector, mostly from big fund houses. In the last one and three years, these schemes have been struggling to give good returns to investors. That is one reason why mutual fund advisors are not very keen on recommending pharma funds to investors. Moreover, most advisors are against the idea of investing in an NFO unless it brings something unique to the table.

“Apart from being an NFO, this is a sectoral scheme and we believe that these schemes are risky for retail investors. You should invest in a scheme like a pharma fund only if you are aware of the sector and you are a mature, aware investor. Even then, going for a scheme that doesn’t have a proven track record is not a wise decision,” says Neeraj Chauhan, CEO, The Financial Mall.

Scheme at a glance:

Category: Sectoral-Pharma

Plans: Growth, Dividend

Benchmark: S&P BSE Healthcare TRI

Fund manager: Dhaval Shah

Exit Load: 0.5% for redemption within 90 days

NFO Open: Jun 20, 2019

NFO Close: Jul 04, 2019

Minimum Investment: 1,000





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