An Opportune Moment To Invest In Pharma Stocks

Sailesh Raj Bhan, Deputy CIO, Equity Investments, and Pharma Fund Manager at Nippon India Mutual Fund, explains how a long-term approach in Systematic Investment Plan (SIP) is a good way to invest in a pharma fund, given its favourable trends, during an interview with Himali Patel. Edited excerpts. Recently, pharma funds have been offering good returns. What could be the reasons behind this rally? The pharma sector in India is one of the most globally competitive sectors. Earnings revival in recent months was the main trigger for the sector’s outperformance, given the fact that valuations were relatively attractive. The sector’s long-term earnings visibility is also strong, given that it is secular and remains ‘unpenetrated’ in India. The COVID-19 crisis also brought out importance of the sector. This should lead to increased awareness and spending over the next...