Why Invest in Bajaj Finserv Healthcare Fund NFO? Experts Review
Are you ready to power up your portfolio for 2025 with this newly launched NFO by Bajaj Finserv Mutual Fund?
Yes, picking on the megatrend, the new Bajaj Finserv Healthcare Fund NFO 2024 has started its subscription on 6the December 2024 and will close on 20 December 2024.
In this expert analysis, you can make up your mind whether or not it's the best NFO in the thematic pharma sector to date.
Let's start by covering the basic details of this latest NFO.
Bajaj Finserv Healthcare Fund NFO Basic Details
| Scheme Name | DSP Business Cycle Fund |
|---|---|
| Issue Open Date | 27 Nov 2024 |
| Issue Close Date | 11 Dec 2024 |
| Category | Equity Thematic |
| Benchmark | Nifty 500 TRI |
| Minimum Application Amount | Rs.100/- and any amount thereafter |
| Fund Managers | Mr. Charanjit Singh |
| Plans & Options | Regular and Direct Plans with Growth and Dividend Options |
Let's hear some compelling reasons as to why investing in healthcare funds is a good option.
Why invest in the Bajaj Finserv Healthcare Fund NFO Now?
Here are some compelling reasons that make this new NFO a valuable addition to your portfolio in 2025:
High Growth Margins
The healthcare sector as an investment theme has outstandingly outperformed the Nifty 50 over different intervals, such as:
In the above graph, you can see that the healthcare sector has outperformed the Nifty 50 both in short (1 year) and long-term (5 years).
Lower Risk
The Bajaj Finserv Healthcare Fund NFO offers the opportunity to invest in the theme-based Mutual Funds, revolving around the healthcare sector. This new fund offer has a lower volatility and downside risk as compared to the broader market indices. You can see the below graphs for a better understanding:
The Healthcare Index stands out as a resilient investment option, consistently giving lower volatility and downside risk than the broader market, making it a suitable choice for long-term investors.
Healthy Fundamentals of Sector
The healthcare sector is favourable for investment now as the fundamentals are compared to broader markets. Refer to the below graph for a clear picture:
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Are you curious to know about the investment framework of this healthcare NFO? Move on to the next heading to get just that.
Bajaj Finserv Healthcare Fund NFO- INQUBE Investing Strategy
This new fund offer launched by one of the prestigious AMCs, the Bajaj Finserv Mutual Fund follows a broad investment approach, called the INQUBE model.
Yes, the prime aim of the Bajaj Finserv Healthcare Fund is to deliver long-term capital to you by investing in companies engaged in the pharmaceutical and healthcare-related sectors. Let's see what this INQUBE investment philosophy:
The above picture shows, this new NFO has divided its investment framework into three sections. These are the information edge, quantitative edge and behavioural edge. Are you seeking long-term wealth creation? If yes, then this thematic fund is perfect for you.
However, before you do that, let's check the portfolio construction of this healthcare fund.
Portfolio Construction Process of Bajaj Finserv Healthcare Fund NFO
The fund follows a unique investment philosophy, the INQUBE framework that includes constructing its portfolio by investing 45-60% in healthcare stocks. Similarly, investing in megatrends targets the transformative trends within India's healthcare sector. For example, a blend of traditional and modern medicine like Ayurveda and Western medicines.
The next step will give you insights into the areas of investment for this NFO.
Where Will the Bajaj Finserv Healthcare Fund NFO Invest?
The Bajaj Finserv Healthcare Fund will keep its major investment in the megatrends, such as:
Regulatory Megatrend
It comes under the Biosecure Act 2024, targeting CRAMS (Contract Research & Manufacturing Services), one of the fast-growing segments in the pharmaceutical and biotechnology industry in India. It is estimated to have doubled since the introduction of the Biosecure Act.
Economic Megatrend
The involvement of this will give the benefit of the growing health insurance penetration in India, which has increased a lot over the years. You can see the below graph to compare the growth:
Demography Megatrend
Investing in this demography megatrend will capture the demographic dividend that projects the annual population of India, which is expected to grow by 1.1 times by FY36. Check out the below graph for data:
Social Megatrend
This segment focuses on health and wellness by investing in preventive healthcare. This sector is expected to form 40% of Indian Healthcare spending. Look at the chart below to compare the data of 2021-2025:
Moving on to another important question about the distribution of assets across multiple sectors.
Sector Allocation of newly launched NFO by Bajaj Finserv Mutual Fund
This New Fund Offer belongs to a thematic sectoral pharma category, focused 76.7% allocation in the pharmaceutical sector. You can check the below chart for the distribution of assets among various other sectors:
The above chart shows, that the bajaj fisnerv healthcare fund NFO has allocated 76.7% to pharmaceuticals, 02.% to biotechnology, 1.5% to healthcare research, analytics & technology, 1.9% to health services providers, 18.7% to hospital and remaining 0.8% in medical equipment & supplies.
Are you unsure about will this new NFO suit you or not? Let's look for your answer in the next heading.
Who Should Invest in new Bajaj Finserv Healthcare Fund NFO?
The following points give insight into the suitability of this new fund offer for you:
· If you are an investor looking to diversify your equity portfolio with healthcare and wellness industries, this is your best chance.
· Investors with a higher risk appetite will find this fund a good alternative to make high returns in 2025.
· Investors looking for tactical allocation in their overall equity portfolio.
· Investors with an investment horizon of 5+ years.
It is time to wrap up the analysis of with expert's opinions on Bajaj Finserv NFO.
Summary of Bajaj Finserv Healthcare Fund Review
In short, the Bajaj Finserv Healthcare Fund review by mutual fund analysts says, that India has a long history and rich evolution of healthcare India has successfully strengthened its ancient roots and adapted to Western medicine.
This megatrend is captured by this new NFO by Bajaj Finserv Mutual Fund.
If you seek to participate in the growth divers of the Indian healthcare sector, this new fund offer is your best bet. Likewise, using the all-time best strategy of SIP (systematic investment plan), you get the chance to invest in top-tier 2-6 cities for multispecialty hospitals, diagnostics and speciality clinics and generate strong wealth for your future.
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