New Darling Of Fund Managers

The year 2020 suddenly saw pharma stocks turn into fund managers’ blue-eyed baby. From a low earnings and valuations base, pharma stocks witnessed large gains from January 2020. As of October 16, 2020, the S&P BSE Healthcare index’s returns increased 48 per cent. Asset Management Companies (AMCs) are mirroring the same trend in their returns. As per data from Value Research as on October 16, 2020, under equity-oriented MF, the category of sectoral pharma fund has gone up by 18.83 per cent in last three months and the returns were up by 64.27 per cent in last one year.  Fund managers are spotting this growth as a major opportunity. Nine AMCs are offering pharma funds. They all favored Cipla, Divi’s Laboratories and Dr Reddy’s Laboratories after analysing their stock portfolio. Eight AMCs have stocks like Alkem Laboratories, Apollo Hospitals, Lupin and Sun...