HDFC Mutual Fund High Return Scheme:HDFC Pharma And Healthcare Fund, the equity scheme of HDFC Mutual Fund, has given excellent returns of more than 50% in 1 year on both SIP and lumpsum. HDFC Pharma & Healthcare Fund is an open-ended equity scheme that invests in pharma and healthcare companies. The performance of this sectoral fund has not only been better than its category average, but it has also outperformed its benchmark, BSE Healthcare Total Return Index. Let us know the complete details of this fund and the features of its portfolio.
Great returns on SIP and lump sum
HDFCPharma and Healthcare FundIt’s been a little more than a year since it was launched. This scheme has given good returns during this period. If someone had invested a lump sum of Rs 1 lakh in this scheme one year ago, then his current fund value would have been around Rs 1.54 lakh. According to the website of HDFC Mutual Fund, the 1 year annualized return of this scheme is 53.62%. If someone had invested Rs 1 lakh with the launch of this scheme, i.e. on October 4, 2023, then his current fund value would have been Rs 1.67 lakh and the annualized return would have been 55.85%.On the other hand, if someone has done a monthly SIP of Rs 10,000 every month during the last one year in this scheme, then his current fund value would have been around Rs 1.52 lakh. Whereas his total investment during this period will be Rs 1.20 lakh.
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Calculation of return on lump sum investment
Fund value for investment of Rs 1 lakh:
- In 1 year: Rs 1,53,619.10
- Since the launch of the scheme till now: Rs 1,67,030
- 1 Year Return: 53.62% (Annualized)
- Returns since launch: 55.85% (Annualized)
Calculation of returns on SIP
Monthly SIP: Rs 10 thousand
Total investment in 1 year: Rs 1.20 lakh
Value of SIP investment in 1 year: Rs 1,51,89.41
1 year return on SIP: 52.29% (annulized)
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Highlights of HDFC Pharma and Healthcare Fund
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Start of the scheme: 4 October 2023
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NAV (Direct Plan): Rs 17.37 (as on January 3, 2025)
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1 Year Returns (Direct Plan): 53.62% (according to HDFC MF website)
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category average: 25.29%
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benchmark returns: 39.58% (BSE Healthcare Index)
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Asset Under Management (AUM): Rs 1,609.33 crore
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expense ratio: 0.92%
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risk level:Very High Risk
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Fund’s portfolio: Which companies are invested in?
The portfolio of HDFC Pharma and Healthcare Fund mainly includes companies from the pharma and healthcare sectors. As per the updated details as on November 30, 2024, the top 10 holdings of the fund and their share in the portfolio are as follows:
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Sun Pharmaceuticals Industries (Sun Pharma): 13.48%
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Divis Laboratories (Divis Lab):7.85%
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Cipla Limited (Cipla): 7.75%
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Lupine Limited: 5.8%
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Gland Pharma Limited: 3.99%
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Ipca Laboratories: 3.75%
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Aster DM Healthcare: 3.57%
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VIJAYA DIAGNOSTIC CENTER: 3.54%
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Eris Lifesciences: 3.38%
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Glenmark Pharmaceuticals (Glenmark Pharma): 3.37%
Fund Management and Strategy
The managers of HDFC Pharma and Healthcare Fund are Nikhil Mathur and Dhruv Muchhal. The objective of this scheme is to achieve long term capital growth by investing mainly in equity and other equity related instruments of pharma and healthcare companies. This is a sectoral fund, hence it can be directly affected by the ups and downs of the pharma sector. This is the reason why it carries more risk than diversified equity funds.
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For whom is this fund suitable?
This fund can be the right option for investors who are looking for long-term capital growth and are interested in the Pharma and Healthcare sector. Those investing in this scheme should be prepared to invest for at least 3 years or more. It is better to invest in equity funds through SIP. HDFC Pharma and Healthcare Fund has attracted the attention of investors with its excellent performance. But before investing in it, it is important to assess your risk tolerance and investment period.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. The past returns of a mutual fund do not guarantee that it will continue in the future. Decisions related to investment should be taken only after consulting an investment advisor.)
