NFO Launched: DSP Healthcare Fund

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There are a number of schemes to invest in under different categories such as equity, debt, hybrid, etc. DSP Heathcare Fund is an open-ended equity scheme which means that it invests mainly in the equity and equity related instruments. Equity funds generally involve high returns’ earning scope for investors and are usually the favorite of aggressive investors, so here is a new opportunity for them. Let’s read about it further but first the experts are sharing with you that why healthcare sector fund should be chosen for investment.

What Healthcare and Pharmaceutical Sectors Have in Store for Investors?

Below are the points that have been shared individually for both the sectors for an investor’s ease.

Healthcare Sector

1. Government has taken active steps in promoting the Indian healthcare sector. It approved Ayushman Bharat-National Health Protection Mission in August 2018 for the betterment of the society. In May 2018, it further approved a financial outlay worth Rs. 14,832 crores for the financial year 2017-18 to financial year 2019-2020.
2. The Indian heathcare industry is estimated to reach $280 billion by 2020.
3. The Indian hospital industry is anticipated to increase and reach Rs. 8.6 trillion by the FY 22 which was Rs. 4 trillion in FY 17.

Pharmaceutical Sector

1. The exports of Indian pharmaceutical industry to the US are bound to increase as many big brands of drugs will become off patent in the States worth US$ 55 billion during 2017-2019.
2. A number of government programmes have been initiated to help and promote the pharmaceutical industry grow. Pharma Vision 2020 has been launched with an aim to make India a world wide leader in drug manufacturing. Drug Price Control Order and National Pharmaceutical Pricing Authority are the mechanisms that have been introduced to take care of the issues related to availability and affordability of medicines in India.
3. An increase is anticipated in medicine spending in India in the year 2018-22 at 9-12 percent CAGR to the US$ 26-30 billion. It is believed that this will be a result of the increasing health insurance, consumer spending, rise in the urbanisation, etc.

All these factors indicate towards the growth scope that these two sectors hold. A rise in their performances will further lead to attractive returns earning opportunities for the investors investing in mutual funds focusing on these sectors.

Did You Know These Points About the Recently Launched DSP Healthcare Fund?

Why Should You Invest in DSP Healthcare Fund?

There are a number of reasons that can attract any investor to incline their money towards this scheme. They are as follows:

1. This scheme is backed by DSP Mutual Fund, which is a trusted fund house with years of experience and professional managers. Investing in its scheme means putting your money to grow under a safe roof.
2. As it has already been discussed about the growth of pharmaceutical and healthcare sector, any investment in the companies belonging to these sectors are likely to generate high returns.
3. In the mutual fund market, high risk means an opportunity for investors to earn high returns. As this scheme is going to invest 80% to 100% of the total assets in equity, therefore it involves high level of risk and have increased chances of delivering good returns.
4. In addition to investment in equity, it may also expose up to a maximum of 10% of your money to REITs and InvITs and up to a maximum of 20% in debt and money market instruments, thus adding little stability to your portfolio.

Who Should Invest in DSP Healthcare Fund?

Since, every investor has a unique investment requirement, therefore it is very important that you monitor well all the factors related to a scheme, especially when it is a new one. Following are the points that will help you decide whether or not this scheme is for you.

1. Aggressive investors who are ready to bear high risk on the principal amount invested may add it to their portfolio.
2. Investors looking forward to monetizing the investment opportunities present in the pharmaceutical and healthcare sector, may invest in this scheme, as it will help you do so indirectly. Thus, minimizing the risk factor compared to the direct investment in stocks of companies.
3. Those who are planning for a long-term investment by adding an equity scheme to their portfolio may do so.
4. Are you seeking sector focused thematic scheme by DSP Mutual Fund? If the answer is a yes, then you may consider investing in this scheme.

The Final Note

Every new scheme is launched with a specific positive pre-set notions to provide a unique opportunity to investors to earn the inflated rate of money in the future which if kept ideal would have been lost. DSP Healthcare Fund is a chance to invest in the healthcare and pharma companies. Hope you have understood everything written in this blog well. In case you need any assistance, you can consult the financial experts right away. Further, if you have any query related to the regular funds, you may post the same here.

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