PGIM India Mutual Fund launches PGIM India Healthcare Fund

 

Bengaluru : PGIM India Mutual Fund today announced the launch of PGIM India Healthcare Fund, an open ended equity scheme investing across equity and equity related securities of healthcare and pharmaceutical companies. The fund is benchmarked against BSE Healthcare TRI.

 

The New Fund Offer (NFO) opens for subscription on November 19, 2024 and closes on December 03, 2024. The scheme re-opens for continuous sale and repurchase on December 11, 2024.

 

“PGIM India Healthcare Fund provides a compelling opportunity for investors to capitalize on India’s burgeoning healthcare sector which benefits from low cost, innovation, growing awareness for health insurance, rising FDI inflows and growing medical tourism and more. We believe the best investment one can make is in one’s own health. The next best investment is protecting yourself and your family with  health/life insurance and investing into healthcare as a segment which is a structural theme,” said Ajit Menon, CEO, PGIM India Asset Management.   

 

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

 

The scheme will invest a minimum of 80% in stocks of pharmaceutical and healthcare companies, up to 20% in other equities, debt and money market (up to 20%), REITs & InvITs (up to 10%) and foreign securities including overseas ETFs up to 20%).

 

The fund may consider investing in various sectors within the healthcare industry, including healthcare services and healthcare manufacturing. Healthcare services include, pharmacy, diagnostics, hospitals and health insurance. Healthcare manufacturing encompasses CRAMS (Contract Research and Manufacturing Services), medical devices, specialty chemicals, formulations and API (Active Pharmaceutical Ingredient), among others.

“The Healthcare sector has a relatively less elastic demand, which results in superior pricing power, especially in an inflationary environment. This provides an opportunity to an investor to compound capital over long periods of time,” says Anandha Padmanabhan Anjeneyan, Senior Fund Manager – Equities, PGIM India PGIM India Asset Management.  

The portfolio will be built utilizing a combination of top-down and bottom-up portfolio construction

process, focusing on the fundamentals of each stock, including quality of management.

The equity portion of the scheme will be managed by Anandha Padmanabhan Anjeneyan, Vivek Sharma, and Utsav Mehta while the debt portion will be managed by Puneet Pal.   

 

What makes Healthcare an evergreen theme?

 

·         A multi decadal structural theme to benefit from rising FDI inflows and government expenditure.

·         Benefit from increased government spending which is projected to reach 2.5% of the country’s GDP by 2025. (Source: www.ibef.org)

·         Benefit from rising demand for medical services due to ageing population, greater health awareness and increased government spending.

·         Emerging trends like AI based diagnostics, med-tech, telemedicine, shift towards preventive healthcare, medical tourism and more bodes well for the sector.

·         Participate in a theme which is relatively immune to economic downturns.

·         Diversified investment opportunity within healthcare and ancillary sectors.

·         Benefit from rising income levels and a changing attitude towards preventive healthcare.

Key Features

 

Minimum Application Amount

 

·         Initial Purchase/Switch-in: Minimum of Rs. 5,000 and in multiples of Re. 1 thereafter.

·         Additional Purchase:  Minimum of Rs. 1,000 and in multiples of Re. 1 thereafter.

·         Redemption: Rs. 1,000 and in multiples of Re. 1 or account balance whichever is lower.

·         SIPs: Minimum no. of 5 instalments and minimum amount per instalment – Rs. 1,000/- each and in multiples of Rs.1 thereafter.

 

Exit Load

 

For each purchase of units through Lumpsum/switch‐in/Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP):

 

·         Within 90 days from date of allotment of units : 0.50%.

·         Beyond 90 days from date of allotment of units : NIL

 

The entire exit load (net of Goods and Services tax), charged, if any, shall be credited to the scheme.