PGIM India MF Unveils New India Healthcare Fund

PGIM India Mutual Fund has launched the PGIM India Healthcare Fund, an open-ended equity scheme primarily focused on investing in healthcare and pharmaceutical companies. The fund is designed to tap into the growth potential of the healthcare sector, offering an opportunity for investors to gain exposure to diverse healthcare segments. The New Fund Offer (NFO) will open on November 19, 2024, and close on December 3, 2024. Afterward, continuous sales and repurchases for the fund will begin on December 11, 2024.

Sector Focus and Growth Potential

The PGIM India Healthcare Fund will be benchmarked against the BSE Healthcare TRI, making it a relevant choice for investors looking to diversify their portfolio into India's rapidly growing healthcare sector. Ajit Menon, CEO of PGIM India Asset Management, highlighted the immense growth potential of the healthcare sector. He mentioned that the sector is benefiting from several factors such as innovation, the growth of medical tourism, and the rising awareness around health insurance. These factors contribute to the fund’s structural investment theme, making it a compelling opportunity for long-term investors.

Vinay Paharia, CIO of PGIM India Asset Management, further emphasized that India’s healthcare sector is poised for growth due to stable domestic demand, the export potential of pharmaceutical products, and the growing trend of the China +1 strategy. This strategy involves companies diversifying their supply chains and turning to India as an alternative source of pharmaceutical products.

Fund Structure and Investment Strategy

The PGIM India Healthcare Fund will invest a significant portion of its capital into healthcare equities. At least 80% of the fund’s assets will be allocated to equities in the healthcare sector, with the remaining 20% invested in other assets such as debt, Real Estate Investment Trusts (REITs), and foreign securities. The fund will focus on various healthcare segments including diagnostics, hospitals, medical devices, and specialty chemicals, ensuring broad diversification within the sector.

Anandha Padmanabhan Anjeneyan, Senior Fund Manager of the fund, emphasized the attractiveness of the healthcare sector due to its pricing power and resilience, which makes it an appealing choice for investors with a long-term perspective. The equity portfolio will be managed by a dedicated team led by Anjeneyan, while the debt portion will be managed by Puneet Pal, ensuring expertise in both equity and debt investments.

Minimum Investment and Charges

Investors can start with a minimum investment of ₹5,000 in the PGIM India Healthcare Fund, making it accessible to a wide range of investors. The fund will charge an exit load of 0.50% for redemptions made within 90 days, after which no exit load will apply. This exit load structure is aimed at encouraging long-term investment while ensuring that short-term investors do not disrupt the fund’s objectives.

Long-Term Growth Opportunities in Healthcare

The PGIM India Healthcare Fund is designed to capitalize on India’s growing healthcare industry, which is driven by multiple factors. Rising incomes, increased government spending on healthcare, and emerging trends such as AI-based diagnostics and telemedicine are expected to fuel this growth in the coming years. As the healthcare sector continues to evolve, the fund seeks to harness the expanding opportunities in both domestic and international markets, positioning itself as a strong growth-oriented investment vehicle.

Conclusion,

The PGIM India Healthcare Fund presents a unique opportunity for investors to benefit from the expansion of India’s healthcare industry, backed by a team of experienced fund managers and a diversified approach to investing in key healthcare segments. This fund aims to provide long-term capital appreciation by focusing on a sector with high growth potential and resilience.