PGIM India Mutual Fund Launches PGIM India Healthcare Fund

PGIM India Mutual Fund has announced the launch of the PGIM India Healthcare Fund, an open-ended equity scheme investing primarily in equity and equity-related securities of healthcare and pharmaceutical companies. The fund is benchmarked against the BSE Healthcare TRI.

NFO Details:

The PGIM India Healthcare Fund’s NFO opened on November 19, 2024, and will close on December 3, 2024. The scheme reopens for continuous sale on December 11, 2024, and is benchmarked against the BSE Healthcare TRI. The minimum application amount is Rs. 5,000 for initial purchase and Rs. 1,000 for additional purchases. The SIP requires a minimum of 5 instalments with Rs. 1,000 per instalment. Exit load is 0.50% if redeemed within 90 days, and NIL beyond that. The exit load (net of GST) will be credited to the scheme.

According to PGIM Mutual Fund, the PGIM India Healthcare Fund will primarily focus on investing at least 80 per cent in stocks of pharmaceutical and healthcare companies. The remaining assets will be allocated across various segments, with up to 20 per cent invested in other equities, debt, and money market instruments. Additionally, up to 10 per cent will be allocated to REITs & InvITs, while up to 20 per cent may be invested in foreign securities, including overseas ETFs.

The fund seeks to invest in different areas of the healthcare industry, covering healthcare services like pharmacies, diagnostic centers, hospitals, and health insurance, as well as healthcare manufacturing, which includes CRAMS, medical devices, speciality chemicals, formulations, and APIs.

Ajit Menon, CEO of PGIM India Asset Management, stated, “PGIM India Healthcare Fund offers a great opportunity to invest in India’s growing healthcare sector, driven by low costs, innovation, rising health insurance awareness, increasing FDI, and medical tourism. The best investment is in your health, followed by securing health or life insurance, and investing in healthcare as a long-term theme.”

Vinay Paharia, CIO, PGIM India Asset Management remarked, “We expect the healthcare sector to be a structural beneficiary of the India growth story. The sector is likely to witness multiple tailwinds, including stable and growing domestic demand, strong pricing power, superior export potential due to India’s competitive advantage, and the China+1 strategy being pursued by global pharma.”

Anandha Padmanabhan Anjeneyan, Senior Fund Manager – Equities, PGIM India Asset Management, said, “The healthcare sector has relatively less elastic demand, which results in superior pricing power, especially in an inflationary environment. This offers investors the opportunity to compound capital over extended periods.”

Who Should Invest?

PGIM Mutual Fund suggests that this Healthcare Fund is ideal for investors seeking long-term capital growth through investments in equity and equity-related securities of pharmaceutical and healthcare companies. This fund is suitable for high-risk investors who understand that their principal investment will be subject to high risk.