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.
