Pharma mutual funds: Kotak Healthcare leads 1-year returns at over 28% — here’s how others performed

Pharma and healthcare-focused mutual funds have delivered strong returns over the past year, with several actively managed schemes giving more than 20% returns. However, the performance has varied significantly across schemes, highlighting the wide gap between the best and worst performers in the category.

Sectoral mutual funds are equity funds that are required to invest at least 80% of their total assets in equity and equity-related instruments of a particular sector. Pharma and healthcare is one of the sectors in which investors can access such funds.

According to Value Research data, the pharma and healthcare mutual fund category has delivered an average return of 0.96% in one month, 11.05% over three months, 19.94% over six months and 19.24% over one year.

However, the category-level numbers include different types of funds, including active funds, index funds and ETFs. Looking specifically at actively managed pharma and healthcare funds, the performance picture is more pronounced.

Which pharma and healthcare funds are leading the 1-year rally?

Kotak Healthcare Fund has emerged as the top performer among the funds listed, delivering 28.85% over the last 1 year. It is closely followed by HDFC Pharma and Healthcare Fund, which returned 28.60%.

The data shows that the leading funds have comfortably outperformed the category's average one-year return of 19.24%.

Which pharma funds are lagging?

ICICI Prudential Healthcare Fund delivered 9.02% in the last 1 year, making it the weakest performer among the funds listed.

Tata India Pharma & Healthcare Fund and Baroda BNP Paribas Health and Wellness Fund followed with returns of 10.62% and 12.81%, respectively.

But even the laggards have remained positive over the one-year period. The wide difference in returns shows that investors in the same sector can experience very different outcomes depending on the fund's portfolio and stock selection.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.