Mutual Fund schemes alternative to business involves Pharmacy / Medical distribution:
1) Nippon India Pharma Fund
2) ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D)
3) Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund
4) ITI Pharma & Healthcare Fund
etc.....
Risk Period: 3 to 4 Years
Expected CAGR: 12% or more
Pharma
Over the past 5 years, the Indian Pharmaceutical Market has grown at ~10% CAGR and is valued at about Rs 1.6 lakh crore or about US$ 22bn. Going forward, it is expected to grow at 7-10% CAGR over the next 3-4 years.
We believe that the sector is poised to outperform in the coming years led by strong growth in the domestic formulation business and healthy traction from international markets.
Balance sheets of most pharma companies are cash-rich and debt-free, offering room for investments in the international markets, something they could not 3-4 years ago. India business provide sustainable secular growth for the companies.
Indian pharma companies have been investing in categories including biosimilars, innovator and patented products, complex injectables, and this would drive growth in the international business over the long term.
We believe that in the next 2-3 years there will be strong growth trajectory for the pharma sector driven by
i) healthy growth momentum from domestic market
ii) moderating price erosion in the US generic space and
iii) complex product launches.
Mutual Fund AMCs are under the regulation of SEBI govt. & AMFI.
Note: Mutual Funds are subjected to Market Risks.
Contact Your Personal Financial Advisor before taking any bold decisions.