Mirae Asset Healthcare Fund

Today, in our fund pick, we’ll explore the Mirae Asset Healthcare Fund, delving into the immense potential within India’s healthcare industry.

Healthcare as a theme has tremendous growth potential and includes businesses in diagnostics, hospitals, medical equipment, specialty chemicals, insurance, and other allied sub-sectors. Investment in healthcare-themed funds allows investors to participate in the growth potential of this sector.

Let us understand the potential that the Healthcare Industry has in India:

  • India’s healthcare landscape is marked by cost-effective quality, offering savings of 65-90% compared to the US, making it a prime Medical Value Travel (MVT) destination.
  • With cutting-edge technology, including robotics, radiation, and AI, Indian hospitals ensure top-notch care
  • Government reforms like FDI enhancements, PLIs, and PMJAY, along with a 13% rise in healthcare sector allocation from 2021-22 to 2022-23, demonstrate a dedicated focus on sectoral growth.
  • Most companies in this sector are reporting good earnings of around 15%.

The Future of the Healthcare Industry:

Healthcare innovation has entered a golden era, and this will have multi-decade tailwinds that are driven by substantial increases in the number of new drug innovations. 

Why Mirae Asset Healthcare Fund?

The Mirae Asset Healthcare Fund predominantly targets Pharma, Healthcare, and related sectors. It provides flexibility across market styles and sizes, maintaining a concentrated portfolio of around 30-40 stocks within these sectors to capture the healthcare industry’s growth potential.

This fund has selective large, growing companies with visible, durable earnings. The drugs these companies produce address a very large, expanding, but currently underserved medical end market.

Diabetes, Dementia, and Oncology are the untapped drug frontiers in the global healthcare sector. Some of the holdings in this fund, like Sun Pharma, Cipla, Dr Reddy’s, and Abbot will grow much larger over the next few years. 

The fund is managed by Mr. Vrijesh Kasera, who has more than 16 years of professional experience. He aims to invest in quality businesses at a reasonable valuation.

Fund performance:

Who Should Invest?

Mirae Asset Healthcare Fund suits investors seeking tactical equity allocation, aiming for long-term capital growth in the healthcare sector. It’s best for those with high-risk tolerance, committing to a 5-year horizon; it offers flexibility for both lump-sum and SIP investments based on financial needs.

Our thoughts:

Mirae Asset Healthcare Fund embodies the pulse of tomorrow’s health sector, offering investors a gateway to an evolving landscape of medical advancements and growing opportunities. As famed investor Warren Buffett once said, ‘Invest in companies with the capability to grow over the years,’ and this fund aims to do just that, steering investments toward cutting-edge healthcare advancements for a brighter, healthier tomorrow.

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