PGIM India Healthcare Fund: PGIM India Mutual Fund has today launched its new fund offer PGIM India Healthcare Fund. It is an open ended equity scheme investing in equity and equity related securities of healthcare and pharmaceutical companies. The benchmark for this fund is BSE Healthcare TRI.
The New Fund Offer (NFO) is opening for public subscription on November 19, 2024 and investments can be made till December 3, 2024. The scheme will reopen for continued sale and repurchase on December 11, 2024.
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What is investment strategy?
This scheme will invest at least 80 percent in shares of pharmaceutical and healthcare companies, up to 20 percent in other equities, debt and money markets, up to 10 percent in REITs and InvITs and up to 20 percent in foreign securities including overseas ETFs.
The fund may consider investing in different sectors within the healthcare industries, including healthcare services and healthcare manufacturing. Healthcare services include pharmacy, diagnostics, hospital and health insurance. Healthcare manufacturing includes CRAMS (Contract Research and Manufacturing Services), Medical Devices, Specialty Chemicals, Formulations and APIs (Active Pharmaceutical Ingredients).
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Why healthcare sector is a better option
Ajit Menon, CEO of PGIM India Asset Management, says that PGIM India Healthcare Fund provides an attractive opportunity for investors to earn profits by investing in India’s rapidly growing healthcare sector. Due to low cost, innovation, increasing awareness for health insurance, increasing FDI inflow and continuously increasing medical tourism and many other factors, investors will get the benefit of investing in this fund. He believes that the best investment any person can make is his health. The next best investment is to protect yourself and your family with health insurance and invest in healthcare as a sector which is a structural theme.
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Benefits of strong pricing power
Vinay Pahadia, CIO, PGIM India Asset Management, says that we expect the healthcare sector to benefit greatly from India’s growth story going forward. Many favorable conditions can be seen in this sector like stable and growing domestic demand, strong pricing power, better export potential due to India’s competitive advantage and China +1 strategy being adopted by Global Pharma.
Sector in demand all the time
Anand Padmanabhan Anjaneyan, Senior Fund Manager – Equities, PGIM India Asset Management, says that the change in price does not have much impact on demand. Due to which the pricing power is better, especially in the inflationary environment. It provides an investor an opportunity to grow his capital in the long term.
The portfolio will be constructed using a combination of top-down and bottom-up portfolio construction processes, focusing on the fundamentals of each stock, including the quality of management. The equity portion of the scheme will be managed by Anand Padmanabhan Anjaneyan, Vivek Sharma and Utsav Mehta while the debt portion will be managed by Punit Pal.
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What makes healthcare an evergreen theme?
· A multi-decade structural theme to benefit from rising FDI inflows and government spending.
· Benefit from increased government spending, which is expected to reach 2.5% of the country’s GDP by 2025. (Source: www.ibef.org)
· Benefit from increasing demand for medical services due to increasing population, increasing awareness about health and increase in government expenditure.
· AI-based diagnostics, med-tech, telemedicine, shift towards preventive healthcare, medical tourism and other emerging trends bode well for the sector.
· Healthcare is a theme which is considered relatively safe even in times of economic recession.
· Diverse investment opportunities in healthcare and allied sectors.
· Benefit from rising income levels and changing attitudes towards preventive healthcare.
NFO: Minimum Application Amount
· Initial Purchase/Switch-in: Minimum of Rs 5,000 and in multiples of Re 1 thereafter.
· Additional Purchase: Minimum of Rs 1,000 and in multiples of Re 1 thereafter.
· Redemption: Rs 1,000 and in multiples of Re 1 or account balance, whichever is lower.
· SIP: Minimum of 5 installments and a minimum amount of Rs 1,000 for each installment and thereafter in multiples of Re 1.
exit load
For each purchase of units through Lump Sum/Switch-in/ Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP):
· Within 90 days from the date of allotment of units: 0.50%.
· After 90 days from the date of allotment of units: Nil
The entire exit load (net of Goods and Services Tax), if any, will be credited to the scheme.
(Note: Investment in mutual funds is also subject to market risk. Therefore, if there is any confusion or doubt regarding the scheme, investors should consult their financial advisor.)
