HDFC Asset Management on Thursday announced the launch of HDFC Pharma and Healthcare Fund. This open-ended equity scheme intends to invest in pharma and healthcare-related companies with a bottom-up approach to stock selection. The new fund offer (NFO) will close on September 28. According to HDFC Mutual Fund, the pharmaceutical and healthcare theme offers a unique proposition that benefits from rising domestic healthcare spend and manufacturing leadership in global markets. Private healthcare spend has grown at a brisk pace in recent years, but there is considerable headroom given that healthcare spending as a percentage of GDP is still low when compared to other emerging and developed economies. The asset management company further added that rising life expectancy, changing disease patterns, a higher share of the elderly population and insurance uptake would propel higher domestic healthcare spend in the long term. Further, India holds a unique position of being the ‘pharmacy of the world’, boosted by supplies of vaccines and other therapeutics for the Covid-19 pandemic. Enabling factors such as the government’s PLI scheme, labour cost advantage and technical know-how should further boost India’s global competitive position. Additionally, with $98 billion worth of small molecule drugs going off-patent over the next five years provides a big opportunity for Indian pharma companies. The fund will be managed by Nikhil Mathur, Fund Manager and Senior Equity Analyst, HDFC Asset Management Company. Commenting on the launch, Nikhil Mathur said “India will continue to command leadership in global pharmaceutical supplies on the back of low-cost manufacturing, ready pool of scientists and track record of meeting stringent quality requirements. Meanwhile on the domestic market front, rising awareness towards health is a key growth driver for the long term.” HDFC Pharma and Healthcare Fund aims to invest the core of the portfolio (over 80 per cent) in pharma and healthcare-related companies. This includes basic industries like pharmaceuticals, hospitals, healthcare service providers, healthcare research, healthcare analytics and technology, medical equipment and supplies. Also watch: PNB, Canara Bank, Bank of Baroda: These PSU bank stocks have risen up to 20% in 1 month
