NFO of ICICI Prudential P.H.D Fund now available on Kuvera
ICICI PRUDENTIAL PHARMA HEALTHCARE AND DIAGNOSTICS FUND (P.H.D) FUND is an open-ended equity scheme following Pharma, Healthcare, Diagnostic and allied Theme. The Scheme is benchmarked to the S&P BSE Healthcare Index.
The investment objective of the Scheme is to generate long-term capital appreciation by creating a portfolio that is invested in Equity and Equity related securities of pharma, healthcare, hospitals, diagnostics, wellness and allied companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
- Open-ended equity scheme following Pharma, Healthcare, Diagnostic and allied Theme
- Subscription closes on 09-Jul-2018
- Expected Date of Allotment: Before 16-Jul-18
- Invest a minimum of Rs. 5,000/- and in multiple of Re 1/- thereafter
- Exit Load: 1% up-to 18 months, Nil thereafter.
For detailed scheme, related information read Scheme Information Document
How to invest:
Go to Explore Funds and then click on NFO to see all the NFOs listed on Kuvera at any given moment. Enter the amount online and pay for it using net banking – just like any other lumpsum investment on Kuvera. Easy as that!
QnA with fund manager Mr.Ihab M Dalwai, on the ongoing NFO ICICI PRUDENTIAL PHARMA HEALTHCARE AND DIAGNOSTICS FUND for the benefit of investors.
Q1. For those looking to invest in pharma sector funds, is this a good time? What investment strategies (SIP, STP, Lumpsum) should they opt?
A – Pharma sector has underperformed the broader markets over the last couple of years. Presently, the top down approach favours the allocation to the sector owing to its attractive valuations. For pharma names, we believe, at current price, market seems to have factored most of the business concerns. Also, these companies are resilient balance sheets coupled with healthy generation of operating cash flows. All these factors reinforce our belief in the pharma story for the long term. It is ideal to invest lumpsum into thematic fund, but if not possible one can opt for the SIP route.
Q2. Why are we seeing a spurt in pharma NFOs?
A –At current juncture, pharma story is an interesting theme given the attractive valuations and defensive play embedded in the sector. Also, the concerns surrounding the sector are getting sorted one-by-one. Additionally, when it comes to healthcare related segments, these days it is not only the pharma companies that are listed. Over the past 2-3 years, there has been an expansion in the investible universe in the broader umbrella of healthcare itself. Today, on the exchanges we have listed hospitals, companies related to health insurance, diagnostics, health food and beverages etc. As such, the healthcare sector as it stands today is diversified enough for long term investing.
Q3. Pharma was considered a safe sector to invest in because pharmaceuticals would always be in demand. What changed, if anything?
A – The healthcare spends, primarily being non-discretionary in nature make the healthcare theme a structural story for long period of time. Data from advanced and other emerging markets suggest that with the increase in per capita income, spends on health care too tends to spurt, which is quite logical. As the income rises, people tend to opt for superior healthcare services. As the healthcare businesses continue to expand, it is likely that more businesses will get listed in the years ahead, providing more opportunities for wealth creation.
Q4. IT sector was lagging for a while until it recently picked up again. Is the pharma sector heading for such a turnaround?
A – Rising income levels, increasing health awareness, improvement in treatment technologies and penetration of health insurance provide the impetus for healthcare to be one of the fastest growing segments in the country. While our spend on healthcare as % of GDP has been very low, renewed focus of the Government on providing healthcare facilities for all has put the spotlight back on the sector. Regarding the FDA issues, we believe the problems have been factored in by the market as these concerns are being addressed systematically.
Q5. For how long should one plan to stay invested for in this sector?
A – Healthcare is a multi-decade story. One should stay invested for at least five to seven years, if not for over a decade.
Q6. How can the general elections of 2019 impact this sector?
A – Over the past four years, NDA Govt. has attempted to transform the healthcare landscape of India. With the recently announced National Health Protection Mission, Govt. aims to provide health insurance coverage to nearly 40% of the population. In fact, the Govt. initiative, “Pharma Vision 2020” aims to make India a global leader in manufacturing as it enjoys the cost-efficient technology with the production cost around 40% lower than the western countries. However, we do not anticipate any major impacts of the general elections 2019 on this sector, especially since the healthcare will continue to remain the cornerstone of the well-being of the nation’s population.
Q7. How can international affairs (mainly US) affect this sector?
A – US policy relating to high medicine prices is for patented drug. Indian companies are majorly into generic medicine and hence are not majorly impacted by US pricing policy.