Ask Money Today: Should I invest in DSP Healthcare Fund?
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Ask Money Today: Should I invest in DSP Healthcare Fund?

Given the rally we have seen in the last 9 months we are definitely not in the value buying zone currently as most of the stocks are priced fairly

  • March 4, 2021  
  • |  
  • UPDATED   11:39 IST
Ask Money Today: Should I invest in DSP Healthcare Fund?

Pharma mutual funds are topping the charts in the last one year. Top schemes like DSP Healthcare Fund have given up to 63% returns in the one-year period. I have read some reports which state that there is still some steam left in this sector. Can I invest in DSP Healthcare Fund or any other good scheme in the pharma space now. Please tell me the good ones.

-Harish M

By Raghvendra Nath, MD, Ladderup Wealth Management

Hi Harish, there is no doubt that pharma has been the theme for the year, and is perhaps the best performing sector in the last year. However, the problem with thematic funds is that they are a bit cyclical in nature, hence you don't want to get caught on the wrong end of the curve. Given the rally we have seen in the last 9 months we are definitely not in the value buying zone currently as most of the stocks are priced fairly. The longer-term outlook for the sector is definitely positive though I believe that the near-term upside may have been already captured. It would be more preferable to select a diversified fund with high pharma exposure or with more exposure towards the ingredients manufacturing space.

From healthcare funds standpoint you can look to invest into DSP Healthcare and Mirae Asset Healthcare funds. Both the funds have well-diversified portfolios with optimal allocations across the pharma themes.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)

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