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:
Indicative allocations (% of total assets)
Equity and equity-related instruments of pharma and healthcare companies
Equity and equity-related instruments of companies other than the above
Units of REITs and InvITs
Medium to High
Debt securities, money market instruments and fixed-income derivatives
Low to Medium
Units of Mutual Fund
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
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.