Kotak Healthcare Fund 2024
The universal pursuit of good health goes beyond personal well-being – it’s becoming a cornerstone of financial growth. As medical advancements redefine our future, healthcare’s importance extends to investment portfolios. Learn about healthcare Mutual Funds and whether they’re a fit for your financial goals.
About Healthcare Funds
Healthcare Mutual Funds, a subset of sectoral funds, specifically target the healthcare sector, investing at least 80% in its stocks. They can be sectoral equity funds or index funds. Index funds mimic a chosen index, replicating at least 95% of its portfolio. For instance, a healthcare fund following the MSCI India domestic & world healthcare 45 Index mirrors its composition.
The expansion of the Indian healthcare sector is propelled by various factors
The global rise in the aging population, coupled with the increased prevalence of chronic diseases post-COVID-19, has fuelled the growth of the healthcare sector. Lifestyle changes favoring fast food contribute to rising health issues, while improved medical treatments and insurance flexibility further drive the demand. Access to specialized care in hospitals has become increasingly crucial in meeting diverse healthcare needs.
Consider Key Factors when investing in healthcare funds
Healthcare, cover pharmaceuticals, hospitals, diagnostic, and more, is growing fast. While investing directly in healthcare stocks has risks like regulatory and legal issues, healthcare mutual funds offers a solution. These funds let you invest in a diverse portfolio managed by professionals, spreading risk. Through they carry high risk, consider them for long-term goals like retirement or wealth accumulation, as they can weather market ups and downs.
Approach to Invest in healthcare funds
Investing in healthcare funds can be done through two main methods: SIP (Systematic Investment Plan) or Lump Sum.
With Online SIP, you invest in fixed sum regularly, starting with a lower initial investment. This method helps manage market fluctuations by allowing you to buy more units when prices are low and fewer units when prices rise, averaging out your overall investment cost.
On the other hand, a lump Sum investment involves putting a larger amount into the fund at once, requiring a higher upfront investments compared to SIPs. Choose the method that aligns with your financial goals and preferences.
India Holds a prominent position globally in pharmaceutical production, ranking 3rd in volume. The country serves over 200 nations and plays a pivotal role in the pharmaceutical landscape. India contributes to approximately 60% of world’s vaccine supply and supplies around 20% of global generics. Notably, it accounts for nearly 40% of the generic supply in the united states, 25% of all medicines in the United Kingdom, and fulfils approximately 50% of Africa’s demand for generics. This underscores India’s significant and widespread impact on global healthcare accessibility
Investing strategy Kotak Healthcare Fund - Prescription for your portfolio
The Kotak healthcare fund provides an opportunity to tap into the flourishing healthcare sector in India. With a focus on long-term capital appreciation, the fund strategically invests in a diverse range of healthcare-related stocks, spanning pharmaceuticals, healthcare services, hospitals, diagnostics, wellness, research and development, manufacturing, and beyond. As an open-ended scheme, its objective is to harness the significant potential within India’s healthcare landscape, capitalizing on the increasing demand driven by evolving population dynamics and India’s prominent position in the global healthcare domain.
Best approach of Investing Undertaken by Kotak Healthcare Funds
Diversify across small, mid, and large-cap stocks, selecting investments using the BMV Model. Focus on companies with good and solid management practices, emphasizing the right valuations for a well-rounded and resilient portfolio.
Strategically aiming for alpha generation over the long-term, our investment approach focuses on capitalizing on the robust opportunities within the healthcare space. The foundation of our strategy lies in building a defensive portfolio, utilizing a dose of diversification to enhance the resilience of the overall investment portfolio. Recognizing export opportunities as a catalyst for sector growth, we are committed to navigating the intricacies of the healthcare industry to achieve sustained success and deliver optimal returns for our investors.
Asset Allocation
Here’s a breakdown of where your money will go and the associated risk: Most of it, 80-100%, will be in healthcare and pharmaceutical companies (high risk).
Up to 20% may be in other stocks and international funds (also high risk).
Another 10% could go into real estate or infrastructure trusts (high risk), and a portion, up to 20% into safer options like debt and money market securities (lower to moderate risk). This helps balance potential returns with different level of risk based on your preferences.
Is It Worth Considering
The objective of the fund is to achieve long-term capital appreciation by constructing a portfolio invested in the stocks of pharmaceuticals, healthcare, hospitals, diagnostics, wellness, and related sectors. The fund is indifferent to market capitalization and might focus on specific stocks with a concentrated exposure.
Who should invest?
This investment opportunity is tailored for seeking to capitalize on the ongoing growth trends in the healthcare and allied industries. Investors looking to align with the structural growth story of sectors such as pharma, hospitals, diagnostics, and healthcare will find this appealing. It suits individuals who are open to tactical allocation within their overall equity portfolio, allowing for strategic adjustments. Ideal for those with a long term investment horizon of 5 years and above, this option is designed to cater to individuals aiming to benefit from the sustained development of the healthcare sector over an extended period.
Fund Manager
Ms. Shibani Kurian, a veteran with 20+ years in Indian equity markets, serves as the fund manager and head of equity research at Kotak Mahindra AMC for over 15 years, showcasing expertise in fund management.
Mr. Dhananjay Tikariha, Co-fund manager with 17 years of experience, specializes in pharma and healthcare sectors at Kotak Mahindra AMC for over 15 years, bringing valuable expertise to fund management.
Conclusion
In summary, the Kotak Healthcare Fund offers an attractive investment avenue for those capitalizing on the strong link between healthcare and financial growth. With a focus on India’s flourishing healthcare sector, the fund strategically diversifies across pharmaceuticals, healthcare services, and more. It aligns with the structural growth story of healthcare, making it appealing for long term investors. The fund’s defensive portfolio strategy and recognition of export opportunities enhance its resilience. Whether through systematic investment plan (SIP) or lump Sum Investments, it caters to different investor preferences. Given India’s global impact on pharmaceuticals, the Kotak healthcare fund stands out as a prescription for a potentially rewarding and resilient portfolio, suitable for those with a strategic asset allocation approach and a long-term investment horizon.
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Best Funds
| Top funds | 1M Return | 6M Return | 1Y Return | 3Y Return | 5Y Return |
|
|
|---|---|---|---|---|---|---|---|
| Kotak Flexi Debt (G) | 1.61% | 7.69% | 11.92% | 10.12% | 9.6% | Invest | |
| Kotak Flexicap Fund - Growth | -0.57% | 19.2% | 35.9% | 17.6% | 19.63% | Invest | |
| Kotak Multi Asset Allocator Fund of Fund - Dynamic - Growth | 1.48% | 14.43% | 30.64% | 19.5% | 21.72% | Invest | |
| Kotak Small Cap Fund - Growth | 1.45% | 27.06% | 41.7% | 22.83% | 33.95% | Invest | |
| Kotak Healthcare Fund - Regular (G) | 8.93% | 14.77% | 0% | 0% | 0% | Invest |