Can Investors Expect Growth with Reliance Pharma Fund?
This article is written with an objective to help the readers become aware about the latest advancements in mutual fund sector, with a key focus on pharma sector products. Reliance Pharma Fund (Growth) is one of the top pharma sector products, and can be chosen for achieving long-term goals and building a good wealth.
Improved medical facilities are the need of the hour. With humans so eager to tear the world apart, diseases have flown in like tsunami which has raised the alarm for more and improved medicines. In the last two decades itself the world witnessed a surprising increase in lethal diseases like cancer, the treatment of which sweeps away a fortune.
With such heavy price tags on medical treatment, it’s not possible for all to afford it and save their lives. Hence, institutions such as Reliance Mutual Fund have launched Reliance Pharma Fund as an initiative to pool the investors’ money and apply it towards the funding of research and development in the field of medicines. They do so by identifying and investing in companies that are actively involved in the pharma sector.
While all these “doctor talks” may not quite convince you to invest in Reliance Pharma Fund (G), we have got a bunch of other reasons that’ll surely make you bow before this fund. Let’s find out what they are!
A Brief Introduction
Reliance Pharma Fund – Regular Plan (G) is an equity oriented thematic fund, primarily offering its assets in companies engaged in pharma industries. The fund was launched way back in June, 2004 with a mission to inflate the investors’ capital by investing in pharma and related companies. Over the period of its operation, the fund has made quite a mark for itself and has been now considered as one of the top thematic funds to be invested in India.
Reliance Pharma Fund manages a large asset pool that extends to a value of â‚ą2, 711 crore as on 30th April 2019. With such immense asset base, the possibilities for the future expansion are unlimited. An investor can pin his funds here and expect achievement of is goals during the longevity.
The Performance Analysis
Good performance is the key to find out whether a particular fund deserves a spot in your investment cart. However, care should be taken that you can’t build a trust notion just by looking at the past one or two years’ performance. Your horizon should be at least five years long, that too considering the consistency of the performance.
In case of Reliance Pharma Fund – Regular Plan (G), the results are quite appealing. The fund has stayed quite above the average marker by producing results worth 19.43%, since inception. Further, the average annual yield in the last five years has placed the fund among the top performing sectoral funds in India. With 10.74% returns earned in the last five years annually, Reliance Pharma Fund has beaten the benchmark and its peers where the maximum output recorded was 6.25% and 8.29%, respectively.
The Investment Technique
As the name suggests, Reliance Pharma Fund (G) is a fund that concentrates on big promising companies in the pharma sector. The majority of the assets of the fund are parked in this sector, and the compass is set for capital appreciation and wealth building.
Since pure equity funds are high on risk, it is very important to distribute the risk within the stocks. This is normally done by involving different types of stocks in the portfolio to incorporate diversification. For the sake of security of the portfolio, Reliance Pharma Fund (Growth) has given maximum space to large cap stocks (54.11), while other stocks such as midcaps (25.98%) and small caps (8.55) have been given a relatively smaller space. This mix works perfectly in tandem with each other, as it blows energy in the portfolio without comprising on the security factor.
The Investment Advice
Starting an investment in Reliance Pharma Fund is quite simple. If you choose to buy an SIP plan, you can easily subscribe to this fund with just ₹500 a month after making an initial investment of ₹5, 000. Investors who can take some risks are encouraged to invest in this fund, as it will fill in their spot for the risk taken. However, care shall be taken that there’s an exit charge on premature redemption within 365 days. So, plan long-term investments only in this fund.
So, if you are interested in taking advantage of the growing pharma sector, then there can’t be a better way to leverage than investing in Reliance Pharma Fund (G).