This A Plan to Make Your Future Financially Secure

Pharma stocks are among the market darlings since a long time and have reached higher sharply in the last few months. Although the pharma funds may delay returns in the short run due to various compliance requirements, in the long run, they are a big shot. As of now with the growing mutual fund industry, the pharma mutual funds are considered to be one of the best-performing sector funds. Among them, the SBI Pharma Fund is the outperformer which has secured the best position in the market. With a NAV amounting to Rs.136.393 as on April 10, 2017, the fund has gained superior possession.

In the long run, every investor desires to invest in a fund that can multiply the income manifolds to provide a huge capital appreciation. On the flip side, the fund managers also get the chance to make the best bet of the invested capital while taking significant risk factors. The SBI Pharma Fund also aims to deliver the highest possible returns to the investors by allocating the funds in the most promising companies across the pharmaceutical sector. The fund is an outperformer in its category with excessive returns.

Investing in pharma sector is one of the best ways of making high growth on capital. The reason being is that this sector has high-growth potential. With a large size of the population in the country, the requirements of pharmacy are greater which make this industry high demanding. SBI Pharma Fund’s review has evaluated that the fund has major investments in the best companies which involve Sun Pharma, Strides Shasun, Aurobindo Pharm, Cipla, and Lupin. These entities have the potential of providing the expected returns on the investments.

SBI Pharma Fund Growth: A Brief Analysis

The primary objective of the scheme is to provide the investors with maximum growth opportunities through equity investments in stocks of growth-oriented sectors of the economy. There are five sub-funds dedicated to specific investment themes, viz., Information Technology, Pharmaceuticals, FMCG, Contrarian, and Emerging Businesses. These all endeavour to generate high-yielding returns on the investments in the long run.

The gains offered by the scheme in the past have been tremendous. The absolute annual returns of the scheme have reached up to 56.3 percent in the year 2014. The annualised returns on the scheme for its three- and five-year investments are 19.3 and 23.4 percent respectively, which are further noteworthy as compared to its peers.

SBI Pharma Growth Fund has the entire investment in the pharmaceutical or the healthcare industry. 97.01% of the total assets of Rs.1,037 crore as on March 31, 2017, is being put in the equity stocks and securities. The remaining assets are parked in the debt instruments in order to provide regular income and diversification.