Reliance Pharma Fund has the reputation of being the best scheme in the category of Pharmaceutical sectoral mutual fund. It has delivered significant returns in the past and has the ability to deliver remarkable gains under favourable market conditions. Unfortunately, the pharmaceutical sector has been unable to find a suitable environment after the demonetisation. Although Reliance Pharma Fund has still impressed people with the performance by delivering the highest gains in the category for last 1 year. The experts believe that fund can be a great choice if the market behaves in favour of the pharmaceutical sector.
Basic Details of Reliance Pharma Fund
Reliance Pharma Fund was launched in June 2004 with an objective to deliver high returns to the investors in the long term through the equity instruments of companies which have their business in the pharmaceutical sector. The fund has been a remarkable performer since a long time and has always delivered best results in the category. Although the growth in the pharma sector has been slowed down in last few years but if the pharma sector gets suitable conditions to grow, Reliance Pharma Fund can deliver outstanding returns as it has done in the past.
Success Strategy of Reliance Pharma Fund
The fund follows a focused approach to invest in the stocks of the pharma sector. The entire AUM of the fund is invested in the 19 stocks of the pharmaceutical sector. Out of which nearly 50% of the corpus is invested in 5 stocks namely Sun Pharmaceutical Ind., Divi's Laboratories, Aurobindo Pharma, Cipla, and Dr Reddy's Lab. This focused strategy to rely mostly on the top 5 stocks has allowed the fund to deliver significant returns in the last 1 year as all these stocks have delivered gains. The large-cap allocation ranges from 60-70% while the rest is invested in mid and small-cap stocks. The fund has been impressive in every aspect whether it is risk, volatility, stability, performance, and risk to reward ratio. The fund manager Mr Shailesh Raj Bhan follows a blend of growth and value investing to deliver gains to the investors.
Expectation From the Fund
In 2019, after a decent start, the equity market was on a rally in the month of March which led the market barometers to significant heights. Every sector experience a positive growth including the pharmaceutical sector. The upcoming elections can play a key role to decide the future of pharma sectors however investment for a long term can be done to gain consistent gains. The pharmaceutical sector is considered as a defensive sector as the concerned business in the pharma sector are consistent and their operation remains beneficial regardless of the market conditions.
Reliance Pharma Fund is considered as the best scheme in the category of pharmaceutical sectoral mutual fund. Supportive market conditions for the pharma sector in 2019 will allow Reliance Pharma Fund to deliver outstanding and best in category returns. The experts at MySIPonline suggest that the fund is suitable for experienced investors who can track the macroeconomic trends concerning the performance of the sector. New investors can take the assistance of the financial experts. Investments made in this fund without checking the suitability can be injurious to the investors. Investors can also download our official Android or iOS app to stay updated with the latest happenings at their fingertips.
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