Aditya Birla Sun Life Mutual Fund
Aditya Birla Sun Life Mutual Fund (formerly known as Birla Sun Life Mutual Fund), is a joint venture between the Aditya Birla Group and Sun Life Financial Inc. of Canada. It offers a variety of mutual fund products to suit investors’ needs across risk categories. Recently, it has released Aditya Birla Sun Life Pharma & Healthcare Fund, an open-ended equity scheme that will invest in the pharma and healthcare service sector. On June 20, the subscription opens for the fund and closes on July 4.
According to the market release by the fund house, the core pharm, and healthcare space, the fund also observes other large opportunities in sectors like a hospital and diagnostics, wellness businesses or the global contract research and manufacturing services industry(CRAMS). The scheme can also invest in equities of listed overseas companies, in line with the RBI and SEBI guidelines. Overall fun will be managed by Dhaval Shah, the benchmark index for the fund is S&P BSE Healthcare TRI(Total Returns Index).
Aditya Birla Sun Life AMC, CEO Balasubramanian: It told that it has been a long-term outperformed over 10 years, except in the past two and three years. The underperformance of the sector in the last three years was due to compliance issues coming from abroad and pricing pressures. Moreover, he expected that risk factored in the prices given the strong balance sheet and export potential of companies in the sector, Poised for a strong rebound, there is an opportunity in the coming cycle to take position given the attractive valuations and the potential growth in the sector.
The fund house reports with a new business cycle coming into play and new businesses with high growth potential and sticky profit like diagnostic, wellness and specialty chemicals also available to invest, this sector is more vibrant than ever before. “To add to the novelty, we also can invest in innovators, patent holders & specialty instrument makers in global markets.
The fund house points out the few main reasons for it to come up with pharma and healthcare fund is that the Indian pharma industry is projected to become a $100 billion industry by 2030, with domestic pharma expected to grow at 10-12 percent per year. The press release noted that the Indian pharma companies are global leaders in generic drug manufacturing. In fact, one in every three medications sold in the US is supplied by an Indian pharma company. The gradual global shift from branded to generic drugs will act as a tailwind and further fuel the export market for Indian Pharma. It also believes that the increased government spending on public healthcare through schemes like ‘Ayushmann Bharat’, growing penetration of health insurance, higher life expectancy and increasing spends towards healthcare and wellness will act as a stimulus for growth.