Pharma Mutual Funds: 28% Returns In One Year; Is It Still Time To Invest For Future Gains?

Pharma and healthcare mutual funds have delivered strong returns over the past year, with some schemes gaining more than 28%. Resilient domestic demand, improving earnings, specialty medicines, chronic therapies and exports have supported the sector. Avinash Gorakshakar, Founder, Avinash Mentor Research, says the pharma sector’s growth runway remains strong, but investors who missed the rally should avoid chasing stocks at current levels. He recommends a staggered approach or SIP strategy in frontline names such as Sun Pharma, Lupin, Torrent Pharma and Aurobindo Pharma. He also sees opportunities in hospitals and diagnostics, where improving margins and demand could support growth over the next 12–18 months.