Mutual Fund: Pharma Sector Report -Sept’20
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Executive Summary:
Since the outbreak of the Coronavirus crisis, the pharma sector stepped into the spotlight. Long overdue investments have been flowing towards the sector and even pharma funds in the mutual fund industry have begun to outperform.
Nevertheless, there is still a clear need for government spending in this sector. Compared to the US, which has the highest per capita spending on healthcare at $5000, India spends merely ~ $50 per capita. The current situation presents the Indian government with a perfect opportunity to increase its expenditure in this sector, to facilitate its growth and fast-track its progress.
Few points about the Pharma Funds:
The market capitalization of the entire pharma & healthcare industry is ~ Rs. 10 lac crs, whereas the total size of pharma funds in the mutual fund is ~Rs. 10k crs, translating to ~ 1% of the entire sector in value terms. (This excludes the pharma holdings in other categories). There are 43 pharma & healthcare companies that form part of the Top 500 companies. Out of these, pharma funds have an exposure to 36 companies. There are 11 companies in the Top 100; 11 in the Midcap space (101-250) and 14 Smallcaps (251-500). The 7 companies that do not form part of the pharma funds’ portfolios are Caplin Point Lab, Glenmark Pharma, Granules India, Piramal Enterprises, Poly Medicure, Suven Pharma and Wockhardt Ltd. Cipla Ltd., Divis Laboratories Ltd. and Dr. Reddy’s Laboratories Ltd. are the only stocks that form part of every pharma fund. There are only 9 funds in the pharma space out of which only 4 of them have an AUM above Rs. 1,000 crores. Out of the 9 funds, only 4 funds are more than 3 years old while the rest were launched within the last 3 years only. Nippon India Pharma Fund is the fund with the highest AUM and it is also one of the oldest pharma fund in the industry. Nippon has the highest exposure to large-cap; IDBI to mid-cap and Tata to small-cap stocks. Pharma Funds have delivered a very muted performance until March, 2020 and the performance has spiraled only in the past 6 months.
Exposure of mutual funds in Pharma & Healthcare companies
Number of companies Market Cap (Rs.cr.) Market cap Industry MF Industry MF Large Cap 12 11 6,80,084 6,275 Mid Cap 12 11 2,24,811 1,501 Small Cap* 19 14 1,24,952 1,337 Total 43 36 10,29,847 9,113 *Companies with rank of only up to 500 are considered. Rest of the exposure is either in cash or companies ranking below 500.
The total AUM of pharma funds as on 30th September 2020 is Rs. 10,564 crores, out of which more than 86% of the exposure is in the top 500 companies.
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Market Cap Comparison
AUM % Holding Scheme Name (Rs. in crs) Large Cap Mid Cap Small Cap Others Nippon India Pharma Fund(G) 3,911 65.8 17.6 13.4 3.2 ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund-(G) 1,988 44.3 23.3 17.9 14.5 SBI Healthcare Opp Fund-Reg(G) 1,434 56.3 19.4 21.5 2.8 Mirae Asset Healthcare Fund-Reg(G) 1,006 57.8 27.2 10.0 5.0 DSP Healthcare Fund-Reg(G) 833 32.8 26.8 21.6 18.8 UTI Healthcare Fund-Reg(G) 586 56.1 20.3 19.2 4.4 Aditya Birla SL Pharma & Healthcare Fund-Reg(G) 416 59.4 22.7 15.2 2.7 Tata India Pharma & Healthcare Fund-Reg(G) 337 52.9 19.3 24.4 3.4 IDBI Healthcare Fund-Reg(G) 55 51.3 29.0 9.3 10.4 Total AUM 10,564 th Data as on 30 Sept’20
Scheme Performance
Absolute Return (%) CAGR (%) Scheme Name 6 Months 9 Months 1 year 3 years 5 years 7 years 10 years Nippon India Pharma Fund(G) 61.5 48.0 60.5 20.5 8.0 17.5 15.4 ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund-(G) 71.9 54.4 69.8 - - - - SBI Healthcare Opp Fund-Reg(G) 60.5 49.7 63.7 13.5 3.4 14.4 15.6 Mirae Asset Healthcare Fund-Reg(G) 68.8 58.9 72.0 - - - - DSP Healthcare Fund-Reg(G) 68.3 61.4 77.3 - - - - UTI Healthcare Fund-Reg(G) 67.5 52.6 66.3 16.4 5.4 13.3 13.1 Aditya Birla SL Pharma & Healthcare Fund-Reg(G) 56.7 42.9 50.9 - - - - Tata India Pharma & Healthcare Fund-Reg(G) 58.8 47.5 54.1 18.5 - - - IDBI Healthcare Fund-Reg(G) 59.2 46.0 56.9 - - - -
Category Average Return 63.7 51.3 63.5 17.2 5.6 15.0 14.7 th Data as on 30 Sept'20
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Nippon India Pharma Fund
NAV (G) Rs. 225.48 Inception date 05-Jun-04
NAV (D) Rs. 70.94 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 3,911 crs Benchmark S&P BSE Health Care
1% on or before Exit Load 1 month, Nil Fund Manager Sailesh Raj Bhan
after 1M 52 Week High (G) Rs. 233.62 Beta 0.4848
52 Week Low (G) Rs. 130.37 Standard Deviation 1.5739
Top 10 holdings Company Name % holding Sector Name % holding
Lupin Ltd. 10.3 Pharmaceuticals & Drugs 78.6
Hospital & Healthcare Aurobindo Pharma Ltd. 10.0 15.7 Services Sun Pharmaceutical Industries Ltd. 9.7 Miscellaneous 2.4
Dr. Reddys Laboratories Ltd. 9.6 Cash & Others 3.2
Divis Laboratories Ltd. 9.4 Total 100.0
Cipla Ltd. 9.3
Thyrocare Technologies Ltd. 5.5
Fortis Healthcare Ltd. 5.0 Fund fact: The fund is the oldest and also the one which has
Cadila Healthcare Ltd. 4.0 highest assets. Shilpa Medicare Ltd. is the unique company in
Sanofi India Ltd. 3.9 this fund with more than 1% exposure
Others 23.3
Total 100.0
Market Cap Allocation Dividend History
3% Financial Year Dividend Payout %age
13% 2020-21* -
18% 2019-20 6.2%
66% 2018-19 6.9%
2017-18 8.3%
2016-17 9.0% Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 59.9% 1 Year 73.1%
FY19-20 -5.8% 3 Years 27.7%
FY18-19 13.5% 5 Years 17.5%
FY17-18 -1.2% 7 Years 15.2%
FY16-17 3.1% 10 Years 16.2%
*Upto 30th September 2020
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ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund
NAV (G) Rs. 16.00 Inception date 13-Jul-18
NAV (D) Rs. 14.61 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 1,988 crs Benchmark S&P BSE Health Care
1% on or before Dharmesh Kakkad & Priyanka Exit Load 15D, Nil after Fund Manager Khandelwal 15D 52 Week High (G) Rs. 16.49 Beta 0.4839
52 Week Low (G) Rs. 8.84 Standard Deviation 1.5359
Top 10 holdings Company Name % holding Sector Name % Holding
Cipla Ltd. 9.6 Pharmaceuticals & Drugs 74.8
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 9.3 4.9 Services Alkem Laboratories Ltd. 5.4 Chemicals 4.5
Dr. Reddys Laboratories Ltd. 5.2 Miscellaneous 3.1
Divis Laboratories Ltd. 4.6 Insurance 1.9
Lupin Ltd. 4.5 Cash & Others 10.8
Tata Chemicals Ltd. 4.3 Total 100.0
Ipca Laboratories Ltd. 4.0
Sanofi India Ltd. 3.3 Fund fact: Tata Chemicals, Neuland Laboratories and
Cadila Healthcare Ltd. 3.3 Dishman Carbogen Amcis are the unique companies in this
Others 46.5 fund with more than 1% exposure
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 15%
2020-21 - 44% 18% 2019-20 -
2018-19 -
2017-18 23% Not applicable 2016-17 Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 69.5% 1 Year 88.0%
FY19-20 -6.4% 3 Years
FY18-19 5 Years Not applicable FY17-18 Not applicable 7 Years
FY16-17 10 Years
*Upto 30th September 2020
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SBI Healthcare Opp Fund
NAV (G) Rs. 177.69 Inception date 05-Jul-99
NAV (D) Rs. 111.93 Category Open ended: Sector – Pharma
AUM (as on 30th Sept 20) Rs. 1,434 crs Benchmark S&P BSE Health Care
1% on or before Exit Load 1 month, Nil Fund Manager Tanmay Desai
after 1M 52 Week High (G) Rs. 181.63 Beta 0.4787
52 Week Low (G) Rs. 102.78 Standard Deviation 1.5445
Top 10 holdings Company Name % holding Sector Name % Holding
Dr. Reddys Laboratories Ltd. 10.9 Pharmaceuticals & Drugs 85.6
Hospital & Healthcare Lupin Ltd. 9.8 11.6 Services Cipla Ltd. 9.7 Cash & Others 2.8
Aurobindo Pharma Ltd. 8.3 Total 100.0
Divis Laboratories Ltd. 7.7
Sun Pharmaceutical Industries Ltd. 7.0
Strides Pharma Science Ltd. 4.5 Fund fact: Sequent Scientific Ltd. and Solara Active Pharma Narayana Hrudayalaya Ltd. 4.0 Science Ltd. are the unique companies in this fund with more Apollo Hospitals Enterprise Ltd. 3.3 than 1% exposure Sequent Scientific Ltd. 3.2
Others 31.6
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 3%
22% 2020-21 -
2019-20 - 56% 19% 2018-19 -
2017-18 12.4%
2016-17 - Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 57.9% 1 Year 76.5%
FY19-20 -5.8% 3 Years 25.6%
FY18-19 1.8% 5 Years 13.1%
FY17-18 -14.7% 7 Years 11.4%
FY16-17 3.3% 10 Years 14.3%
*Upto 30th September 2020
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Mirae Asset Healthcare Fund
NAV (G) Rs. 17.37 Inception date 02-Jul-18
NAV (D) Rs. 17.37 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 1,006 crs Benchmark S&P BSE Health Care
1% on or before Exit Load 1 month, Nil Fund Manager Vrijesh Kasera
after 1M 52 Week High (G) Rs. 17.88 Beta 0.4975
52 Week Low (G) Rs. 9.68 Standard Deviation 1.5385
Top 10 holdings Company Name % holding Sector Name % holding
Dr. Reddys Laboratories Ltd. 11.3 Pharmaceuticals & Drugs 78.4
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 9.8 6.9 Services Divis Laboratories Ltd. 8.0 Chemicals 4.0
Cipla Ltd. 7.3 Insurance 2.7
Ipca Laboratories Ltd. 6.1 Miscellaneous 1.8
Lupin Ltd. 5.1 Finance - Others 1.6
Torrent Pharmaceuticals Ltd. 5.0 Diversified 1.3
Aurobindo Pharma Ltd. 4.8 Cash & Others 3.2
Laurus Labs Ltd. 4.4 Total 100.0
Apollo Hospitals Enterprise Ltd. 4.0 Fund fact: Max Financial Services, Rossari Biotech, SRF Ltd.
Others 34.2 and Vinati Organics are the unique companies in this fund
Total 100.0 with more than 1% exposure
Market Cap Allocation Dividend History
5% Financial Year Dividend Payout %age
10% 2020-21 -
2019-20 - 27% 58% 2018-19 -
2017-18 Not applicable 2016-17 Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 65.9% 1 Year 90.2%
FY19-20 6.2% 3 Years
FY18-19 5 Years Not applicable FY17-18 Not applicable 7 Years
FY16-17 10 Years
*Upto 30th September 2020
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DSP Healthcare Fund
NAV (G) Rs. 17.58 Inception date 30-Nov-18
NAV (D) Rs. 17.58 Category Open ended: Sector – Pharma
AUM (as on 30th Sept 20) Rs. 833 crs Benchmark S&P BSE Health Care
1% on or before Aditya Khemka & Exit Load 12M, Nil after Fund Manager Vinit Sambre 12M 52 Week High (G) Rs. 17.92 Beta 0.4826
52 Week Low (G) Rs. 9.69 Standard Deviation 1.5364
Top 10 holdings Company Name % holding Sector Name % holding
Cipla Ltd. 9.6 Pharmaceuticals & Drugs 60.5
Hospital & Healthcare Dr. Reddys Laboratories Ltd. 9.1 14.5 Services Ipca Laboratories Ltd. 7.9 Insurance 3.8
Divis Laboratories Ltd. 5.6 Miscellaneous 3.1
Apollo Hospitals Enterprise Ltd. 5.4 Chemicals 2.7
Torrent Pharmaceuticals Ltd. 4.8 Cash & Others 15.4
Procter & Gamble Health Ltd. 4.4 Total 100.0
JB Chemicals & Pharmaceuticals Ltd. 4.0
ICICI Lombard General Ins. Co Ltd. 3.8 Fund fact: Max Healthcare Institute, Aarti Drugs and Unichem
Max Healthcare Institute Ltd. 3.3 Laboratories are the unique companies in this fund with
Others 42.1 more than 1% exposure
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 19%
33% 2020-21 -
2019-20 - 22% 2018-19
27% 2017-18 Not applicable
2016-17 Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 64.6% 1 Year 96.2%
FY19-20 3.3% 3 Years
FY18-19 5 Years Not applicable FY17-18 Not applicable 7 Years
FY16-17 10 Years
*Upto 30th September 2020
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UTI Healthcare Fund
NAV (G) Rs. 129.84 Inception date 01-Aug-05
NAV (D) Rs. 100.35 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 586 crs Benchmark S&P BSE Health Care
1% on or before Exit Load 1 month, Nil Fund Manager V. Srivastava
after 1M 52 Week High (G) Rs. 132.64 Beta 0.4497
52 Week Low (G) Rs. 73.79 Standard Deviation 1.5324
Top 10 holdings Company Name % holding Sector Name % holding
Dr. Reddys Laboratories Ltd. 11.0 Pharmaceuticals & Drugs 87.8
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 10.6 7.7 Services Divis Laboratories Ltd. 7.7 Cash & Others 4.4
Cipla Ltd. 7.4 Total 100.0
Ipca Laboratories Ltd. 6.1
Cadila Healthcare Ltd. 5.7
Aurobindo Pharma Ltd. 4.2 Fund fact: Advanced Enzyme Technologies Ltd. and Eris Lifesciences Ltd. 4.1 FDC Ltd. are the unique companies in this fund with more Biocon Ltd. 4.1 than 1% exposure Laurus Labs Ltd. 3.9
Others 35.2
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 4%
19% 2020-21* -
2019-20 - 56% 20% 2018-19 -
2017-18 -
2016-17 - Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 64.1% 1 Year 83.6%
FY19-20 -7.1% 3 Years 27.8%
FY18-19 4.7% 5 Years 15.5%
FY17-18 -8.2% 7 Years 12.5%
FY16-17 4.1% 10 Years 13.3%
*Upto 30th September 2020
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Aditya Birla SL Pharma & Healthcare Fund
NAV (G) Rs. 15.23 Inception date 10-Jul-19
NAV (D) Rs. 15.22 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 416 crs Benchmark S&P BSE Health Care
0.50% on or Exit Load before 90D, Nil Fund Manager Dhaval Shah
after 90D 52 Week High (G) 15.71 Beta 0.4553
52 Week Low (G) 9.28 Standard Deviation 1.4458
Top 10 holdings Company Name % holding Sector Name % holding
Dr. Reddys Laboratories Ltd. 12.0 Pharmaceuticals & Drugs 76.1
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 8.7 13.2 Services Lupin Ltd. 8.6 Consumer Food 4.08
Cipla Ltd. 8.0 Chemicals 3.9
Divis Laboratories Ltd. 7.2 Cash & Others 2.7
Aurobindo Pharma Ltd. 4.8 Total 100.0
Metropolis Healthcare Ltd. 4.2
Zydus Wellness Ltd. 4.1
Biocon Ltd. 3.9 Fund fact: Atul Ltd and Zydus Wellness are the unique
Atul Ltd. 3.9 companies in this fund with more than 1% exposure
Others 34.6
Total 100.0
Market Cap Allocation Dividend History
3% Financial Year Dividend Payout %age 15%
2020-21 -
2019-20 23% 59% 2018-19 Not applicable 2017-18
2016-17 Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 54.5% 1 Year 66.4%
FY19-20 3 Years
FY18-19 5 Years Not applicable Not applicable FY17-18 7 Years
FY16-17 10 Years
*Upto 30th September 2020
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Tata India Pharma & Healthcare Fund
NAV (G) Rs. 13.60 Inception date 28-Dec-15
NAV (D) Rs. 13.60 Category Open ended: Sector – Pharma
AUM (as on 30th Sept 20) Rs. 337 crs Benchmark NIFTY PHARMA – TRI
1% on or before Exit Load 12M, Nil after Fund Manager Meeta Shetty & Rahul Singh
12M 52 Week High (G) Rs. 14.00 Beta 0.4650
52 Week Low (G) Rs. 8.27 Standard Deviation 1.5621
Top 10 holdings Company Name % holding Sector Name % holding
Dr. Reddys Laboratories Ltd. 15.5 Pharmaceuticals & Drugs 80.2
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 10.3 11.6 Services Cipla Ltd. 9.4 Miscellaneous 4.7
Divis Laboratories Ltd. 8.4 Cash & Others 3.4
Ipca Laboratories Ltd. 7.0 Total 100.0
Narayana Hrudayalaya Ltd. 6.7
Lupin Ltd. 6.1
Laurus Labs Ltd. 4.8 Fund fact: The fund has highest concentration amongst all
Procter & Gamble Health Ltd. 3.9 the pharma funds with least number of stocks and average
Indoco Remedies Ltd. 3.4 exposure per company is 4.5%
Others 24.5
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 3%
24% 2020-21 -
2019-20 - 53% 2018-19 - 19% 2017-18 -
2016-17 - Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 54.5% 1 Year 71.5%
FY19-20 -2.2% 3 Years 27.4%
FY18-19 8.9% 5 Years
FY17-18 -8.4% 7 Years Not applicable
FY16-17 -2.9% 10 Years
*Upto 30th September 2020
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IDBI Healthcare Fund
NAV (G) Rs. 15.51 Inception date 28-Feb-19
NAV (D) Rs. 15.51 Category Open ended: Sector - Pharma
AUM (as on 30th Sept 20) Rs. 55 crs Benchmark S&P BSE Health Care
1% on or before Exit Load 12M, Nil after Fund Manager Uma Venkatraman
12M 52 Week High (G) Rs. 15.91 Beta 0.4722
52 Week Low (G) Rs. 9.23 Standard Deviation 1.5107
Top 10 holdings Company Name % holding Sector Name % holding
Dr. Reddys Laboratories Ltd. 12.1 Pharmaceuticals & Drugs 74.4
Hospital & Healthcare Sun Pharmaceutical Industries Ltd. 9.2 7.9 Services Divis Laboratories Ltd. 8.4 Chemicals 2.7
Cipla Ltd. 6.1 Insurance 2.3
Ipca Laboratories Ltd. 5.1 Miscellaneous 2.2
Apollo Hospitals Enterprise Ltd. 3.8 Cash & Others 10.4
Aurobindo Pharma Ltd. 3.4 Total 100.0
Lupin Ltd. 3.4
Torrent Pharmaceuticals Ltd. 3.3 Fund fact: Aarti Industries Ltd. is the unique company in this Natco Pharma Ltd. 2.8 fund with more than 1% exposure Others 42.4
Total 100.0
Market Cap Allocation Dividend History
Financial Year Dividend Payout %age 11%
9% 2020-21 -
2019-20 - 51% 2018-19 29% 2017-18 Not applicable
2016-17 Large Cap Midcap Small Cap Others
Performance Financial year wise return SIP Return
Year Absolute return Year XIRR
FY20-21* 56.2% 1 Year 70.9%
FY19-20 0.1% 3 Years
FY18-19 5 Years Not applicable FY17-18 Not applicable 7 Years
FY16-17 10 Years
*Upto 30th September 2020
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