KOCHI:
DSP Investment Managers Pvt. Ltd. announced the launch of DS P Healthcare Fund, an open ended scheme investing in the healthcare and pharma sector. The fund would be predominantly investing in equity and equity related securities of healthcare and pharmaceutical companies with some portfolio allocation to foreign securities.The NFO is scheduled to open on November 12 and close on November 26, 2018.
DSP Healthcare Fund may invest up to 25% in international healthcare stocks, especially large US companies, thereby giving investors access to international diversification as well. DSP Healthcare Fund aims to benefit from three major growth drivers in India – growing demand, export opportunities and a conducive policy environment. The Indian Healthcare sector is witnessing growing demand, driven by rising incomes and affordability.Growing elderly population, changing disease patterns, rise in medical tourism and better awareness of wellness, preventive care and diagnosis, are factors that are expected to contribute to the demand. Export opportunities are expected to increase after the bottoming out of the US pricing cycle, opening up of Chinese market, which is the second largest pharma market in the world, and dedicated R&;D to create patented revenues in exports.
Government policy measures like Ayushman Bharat – the largest government insurance initiative in the world is expected to insure close to an additional 40 crore people, to add to around 30-40 crore people who are currently insured in India. This is expected to generate volume growth for the private sector including hospitals, diagnostics, pharmaceutical companies & medical insurance. The Government is expected to invest close to Rs. 35,000 crore by 2025 in the sector.
The benchmark for the fund would be the S&P BSE Healthcare Index. The fund will be managed by Aditya Khemka and Vinit Sambrewhile Jay Kothari would be the dedicated Fund Manager for overseas investments. While there is no entry load, exit load would be 1% if redeemed within 12 months.
Announcing the launch of the new fund, Kalpen Parekh, President, DSP Investment Managers said, “This is an interesting time for the Indian Healthcare sector. Despite disappointing earnings growth in FY18, many companies are at an inflection point and have the potential to be re-rated as temporary disruptions get resolved. Indian investors can take advantage of the potential in the space with an added element of global diversification to manage volatility. I am confident that Aditya’s global sector experience and Vinit’s expertise in healthcare and small and mid-caps can be significant advantages in identifying and leveraging the potential in the space.”
Vinit Sambre, Head – Equities, DSP Investment Managers said, “India is expected to be part of the top three pharmaceutical markets in terms of consumption by 2030.Many of these Indian healthcare companies have a good long-term potential as they are focusing on R&D and are reducing their overheads with the results likely to reflect in their profitability over time. Government measures like Ayushman Bharat as part of a conducive policy are also expected to spur growth in the sector. Investors can also look to benefit from international healthcare exposure which may help in reducing portfolio volatility and could also help deliver better returns per unit of risk.”
