HDFC Mutual Fund announced the launch of the HDFC Pharma and Healthcare Fund, an open-ended equity scheme investing in pharma and healthcare companies.
The scheme opened for public subscription on September 14, 2023, and will close on September 28, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing in pharma and healthcare companies.
What is the main objective of investing in this fund?
The investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of pharma and healthcare companies. There is no assurance that the investment objective of the scheme will be realized.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Equity and equity-related instruments of pharma and healthcare companies | 80% | 100% | Very High |
Equity and equity-related instruments of companies other than the above | 0% | 20% | Very High |
Units of REITs and InvITs | 0% | 10% | Medium to High |
Debt securities, money market instruments and fixed-income derivatives | 0% | 20% | Low to Medium |
Units of Mutual Fund | 0% | 5% | Low to High |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such healthcare funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Mutual Fund House | Name of the Fund |
DSP Mutual Fund | DSP Healthcare Fund |
SBI Mutual Fund | SBI Healthcare Opportunities Fund |
UTI Mutual Fund | UTI Healthcare Fund |
Aditya Birla Sun Life Mutual Fund | Aditya Birla Sun Life Pharma & Healthcare Fund |
ITI Mutual Fund | ITI Pharma & Healthcare Fund |
Aditya Birla Sun Life Mutual Fund | Aditya Birla Sun Life Banking and Financial Services Fund |
Mirae Asset Mutual Fund | Mirae Asset Healthcare Fund |
ICICI Prudential Mutual Fund | ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund |
IDBI Mutual Fund | IDBI Healthcare Fund |
| Source: MoneyControl | |
How will the scheme benchmark its performance?
As the scheme proposes to invest predominantly in pharma and healthcare companies, the benchmark would be appropriate to compare the performance of the scheme. The Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (MF) Regulations, and other prevailing guidelines, if any by suitable notification to the investors to this effect.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be calculated as under
- In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/switched out within one year from the date of allotment.
- No exit load is payable if units are redeemed/switched out after one year from the date of allotment.
Who will manage this scheme?
Nikhil Mathur and Dhruv Muchhal are the designated fund managers of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
