Pharma sector mutual funds have delivered over 60% returns in the last one year. These funds have been enjoying their spot under the sun since the covid-19 crisis struck the globe.
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NEW DELHI: Smallcap- and multicap-oriented PMS (portfolio management service) funds, an investment tool of rich investors, outperformed in April and delivered up to 14 per cent returns to clients.
Top guns of the PMS industry also delivered handsome returns for the month. Domestic equity benchmark Sensex fell 1.5 per cent for the month, while Nifty shed 0.4 per cent.
Kotak AMC Pharma Fund finished as the top performer of the month, returning 13.39 per cent, according to data provided by PMSBazaar.
Sun Pharma, Dr Reddy’s Labs, Cipla,
Cadila Healthcare and Aurobindo Pharma were the top five holdings in its portfolio.
Sectoral bets, especially metals, pharma and IT, have been proving to be beneficial for fund managers in the past couple of months, as the Covid-19 pandemic intensified and commodity prices rose.
As ARK readies itself for what could be another tumultuous day on Tuesday, with the firm s assets dropping below $20 billion to their lowest level since January, more eyes are turning to how Cathie Wood is steering her firm through the rough seas .Â
ARK s flagship fund was down another 5% in pre-market trading on Tuesday falling below the psychological level of $100 per share and has fallen for 9 of the past 10 sessions, according to Bloomberg, who noted that the decline accelerated on Monday in the biggest slide in about seven weeks .
At this point, the chicken and the egg argument between ARKK, shares of its components - notably heavily held (and potentially extremely overvalued) names like Tesla and Palantir - and the indicies where its components reside, becomes meaningful conversation and not just fodder.Â
Should you go for pharma funds amid fresh spike in covid cases?
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On Friday, Axis Mutual Fund launched the Axis Healthcare ETF, which will track the Nifty Healthcare Index.
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After years of underperformance, the Indian healthcare sector sprang into action post March 2020 as the first wave of covid-19 hit the country. However, from December onwards, the sector went into a healthy correction as investors moved to cyclicals as the economy opened up. The fresh spike in cases has again made the case for tactical allocation to healthcare.
To ride the trend, Axis Mutual Fund on Friday launched Axis Healthcare Exchange-Traded Fund (ETF). The open-ended ETF, which will close on 10 May, will track the Nifty Healthcare Index, and will be managed by Jinesh Gopani, head of equity, Axis AMC.