Earlier this week, we looked at a common problem prospective investors face, i.e., they know how to make money, but don’t know the right place to invest the money they make. It’s why we do posts of this nature on our blog. In today’s post, allow us to point you two investment avenue that you can participate in easily and securely.

What is it? DSP Mutual Fund is coming up with a new fund called World Healthcare Fund.

Come again? As the name suggests, the fund will look at investing across the spectrum in the healthcare sector. This sector includes companies from Pharma, Hospitals, Diagnostics, Chemicals, Health Insurance, Medical Devices etc.

Where is the opportunity? Some of the reasons we are recommending this fund are, ageing population, changing disease patterns, awareness of wellness, and rising incomes. These are the key drivers for the investment opportunity in healthcare. The fund will look to invest mostly into domestic pharma, export pharma, companies exporting to US and partly into US healthcare companies.

What else? Mirae Asset had recently come with the same thesis on healthcare and have a fund called ‘Mirae Asset Healthcare Fund’.

Which is better? We think Mirae has better research strength. Hence, one can skip this offering from DSP.

Anything else? The other pure pharma funds like SBI Pharma and Reliance Pharma funds have also done well in the last 5-10 year time frame.

The bottom line: Please note these are thematic funds and carry higher risk than the regular diversified equity funds. One should consult their financial advisor before considering these kind of investments.

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