Why Invest in PGIM India Healthcare Fund NFO? Explore Sector Growth!

India’s healthcare sector is witnessing remarkable growth, with public healthcare expenditure rising to 2.1% of GDP in FY23 from 1.6% in FY21, as per the Economic Survey 2022-23.

This growth opens up a diverse array of investment opportunities across sub-themes such as hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment.

Recognising this potential, PGIM India Mutual Fund has introduced the PGIM India Healthcare Fund NFO, offering investors a chance to tap into the promising trajectory of India’s healthcare and pharmaceutical sectors.

With the help of tools like a SIP calculator, investors can plan and manage their investments systematically, ensuring a clear path toward long-term capital appreciation.

Details of PGIM India Healthcare Fund NFO

The PGIM India Healthcare Fund NFO is an open-ended equity scheme focusing on investments in the healthcare and pharmaceutical sectors. It aims to generate long-term capital appreciation by actively managing a portfolio of equity and equity-related securities within the healthcare industry.

Investment Objective of the Fund

PGIM India Healthcare Fund NFO’s primary objective is to generate consistent returns by investing predominantly in equity and equity-related securities of pharmaceutical and healthcare companies. However, it does not guarantee any returns or assurance of achieving its investment objective.

Overview of PGIM India Healthcare Fund

Portfolio Construction

PGIM India Healthcare Fund NFO will allocate its assets to a variety of sub-sectors within healthcare, including:

• Healthcare Services: Hospitals, diagnostics, health insurance, and telemedicine.
• Healthcare Manufacturing: Medical devices, specialty chemicals, CRAMS, formulations, and APIs.

Here’s how the assets of PGIM India Healthcare Fund are distributed:

The portfolio will combine top-down and bottom-up approaches, focusing on strong fundamentals such as management quality and financial health.

Understanding Risks and Returns

The PGIM India Healthcare Fund NFO offers exposure to a dynamic and growing sector, making it an attractive choice for long-term investors. However, the high-risk profile is a critical factor to consider, as investments in healthcare stocks may experience volatility due to regulatory changes, R&D risks, and evolving industry dynamics.

The benchmark, BSE Healthcare TRI, has delivered returns of 44.54% and 69.25% over the past 1 and 3 years, respectively. Investors must be prepared for potential tracking errors as the fund actively seeks opportunities across diverse healthcare sub-themes.

Asset Management Company

PGIM India Mutual Fund, formerly known as DHFL Pramerica Mutual Fund, is now a fully owned subsidiary of PGIM, the global investment management division of Prudential Financial. As a leading global investment manager, PGIM Mutual Fund provides a wide array of actively managed asset classes and investment strategies, including equities, fixed income, and real estate.

PGIM India manages approximately 25 open-ended funds, supported by a team of 17 investment professionals. In addition to its domestic Mutual Fund offerings, PGIM India also provides offshore funds and portfolio management services.

As of June 30, 2024, PGIM India Mutual Fund has assets under management (AUM) totaling ₹ 25,189.59 crore.

Meet the Fund Managers

The PGIM India Healthcare Fund NFO is managed by a team of highly experienced professionals:

PGIM India Healthcare Fund NFO is managed by a team of highly skilled professionals with extensive experience in their respective fields.

Mr. Vivek Sharma

Mr. Sharma holds a PGDM in Finance and brings over 14 years of experience in equity markets and fund management. He is currently serving as the Fund Manager – Equity at PGIM India Asset Management. Prior to this, he managed equity portfolios at Edelweiss Asset Management and ICICI Securities.

Mr. Anandha Padmanabhan Anjeneyan

With a B.Com, ACA, CFA, and FRM, Mr. Anjeneyan has over 15 years of experience in equity research and fund management. He has been part of PGIM India Asset Management and has also worked at Renaissance Investment Managers and Canara Robeco Asset Management.

Mr. Utsav Mehta

Mr. Mehta, who holds a B.Com and CFA, has 13 years of experience in equity markets and fund management. He is currently the Vice President and Fund Manager – Equity at PGIM India Asset Management. His previous experience includes roles at Edelweiss Asset Management and Ambit Capital.

Mr. Puneet Pal

Mr. Pal, with an MBA in Finance, has more than 20 years of experience in the debt markets. He currently serves as the Head of Fixed Income at PGIM India Asset Management. Before this, he held senior positions at BNP Paribas Asset Management and PGIM India Asset Management.

Who Should Invest in This NFO?

The PGIM India Healthcare Fund NFO is well-suited for:

• Investors seeking exposure to India’s growing healthcare and pharmaceutical industries.
• Individuals aiming for long-term capital appreciation through sectoral investments.
• Those with a high-risk appetite, prepared for market volatility.

This fund is ideal for investors looking to capitalize on the long-term growth potential of India’s healthcare sector, driven by rising public expenditure, medical advancements, and diverse investment opportunities.

Conclusion

For those looking to capitalize on India’s booming healthcare sector, the PGIM India Healthcare Fund is an excellent choice. By investing through the best SIP platform, you can systematically grow your portfolio while taking advantage of expert management and advanced tools. Secure your financial future with strategic investments in one of the fastest-growing sectors of the Indian economy.

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