HDFC Pharma & Healthcare Fund Delivers 30.19% CAGR, Scheme Bets On India’s Expanding Healthcare Sector

Mumbai: HDFC Mutual Fund has highlighted the performance of its HDFC Pharma and Healthcare Fund, which delivered a compound annual growth rate of 30.19 percent since its launch on October 4, 2023.

The sectoral fund also generated a one-year return of 19.01 percent as of July 31, 2026. Its net asset value stood at Rs 21.069 on the same date.

Where does the fund invest?

The scheme aims to generate long-term capital appreciation by investing mainly in equity and equity-related instruments of pharmaceutical and healthcare companies.

Its portfolio covers pharmaceuticals, hospitals, healthcare service providers, biotechnology, medical equipment and supplies. The fund follows a research-led, bottom-up investment approach and can invest across companies of different market capitalisations.

Nikhil Mathur manages the HDFC Pharma and Healthcare Fund.

Healthcare growth opportunity

HDFC Mutual Fund said India’s pharmaceutical and healthcare industry offers a structural growth opportunity, supported by rising domestic demand, increasing healthcare expenditure and expanding export opportunities.

India’s position as a major global pharmaceutical manufacturing centre is also expected to support the sector’s long-term prospects.

The fund house sees opportunities in complex generic medicines, biosimilars, speciality drugs, contract development and manufacturing, hospitals, diagnostics and medical technology.

Long-term trends support demand

An ageing population, the growing incidence of lifestyle-related diseases, rising per capita income and increasing health insurance penetration could further boost healthcare spending in India.

HDFC AMC Managing Director and Chief Executive Officer Navneet Munot said the fund house remains focused on identifying businesses that are well placed to benefit from these long-term trends.

However, investors should note that sectoral and thematic schemes carry higher risks than diversified equity mutual funds because their investments are concentrated in a particular sector or theme.

Past performance may not continue in the future and does not guarantee future returns. Investors should carefully assess their risk appetite and financial goals before investing.