How Do Pharma and Healthcare Mutual Funds Work?

Pharma and Healthcare Mutual Funds pool investments from multiple investors to create a diversified portfolio within the healthcare sector. Professional fund managers analyse industry trends, regulatory environments, and company fundamentals to select stocks with strong growth potential. These funds typically maintain 80% of their assets in healthcare and pharmaceutical companies, balancing established manufacturers with emerging healthcare technology firms.

The sector's essential nature and continuous innovation provide stability and growth opportunities. This combination of defensive characteristics and innovation-driven growth makes healthcare funds in India particularly valuable for investors seeking sector-specific exposure with long-term potential.