Presenting the mega theme for 2024 – Pharma ! Pharma as an index has shown a historic break out after 2015. Experts believe that this break out is sure shot bull signal. Even the pharma fund chart given below speaks the same signal ( data as on 28th January 2024) :
On the Risk – Reward proposition also, pharma as a sector is very well placed.
The government aims to grow the pharmaceutical industry by about four times to $200 billion by 2030, Arunish Chawla, secretary, department of pharmaceuticals, said on Friday. And to rise to that challenge, we have initiated the production-led incentive scheme, but not just for formulations, but also bulk drugs, drug intermediates, and the meditech sector, which are the rising sectors of our economy," he added added.
India has the largest number of FDA- approved plants in the US and exports to 200 countries with value accounting to more than $50 billion. Further, two-thirds of global vaccines for World Health Organization requirements are met by India.
“India for India makes sense. And China for the world used to be the biggest title. Today, I want to say China and India for the world, not only China. We need to balance. You don’t put all your eggs in one basket. India will need to make sure the infrastructure exists for these companies to grow. We will have much more manufacturing," said Elie Chaillot, president and chief executive of Intercontinental GE HealthCare told Mint in September.
Over the past five decades, Indian pharma stocks have experienced significant growth in domestic and global markets. From contributing just 5% of the medicine consumption in 1969 (95% share with the global pharma), the share of “Made in India” medicines in the Indian pharma market is now a robust 80%
Thus, considered the third-largest in terms of volume and the thirteenth-largest in value, the Indian pharma companies are attracting a new set of investors heavily. Therefore, pharma sector stocks are suitable for top-down and bottom-down investing, which are also considered defensive stocks. you can consider following Mutual Fund schemes for doing SIP in this attractive Pharma theme :
Data as on 28th jan 2024 :
Conclusion : Pharma as a theme is the most attractive theme in the year 2024 and needs to be added in your SIP portfolio or Lumpsum investment portfolio
Disclaimer :Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.