| Type | Description | Contributor | Date |
|---|---|---|---|
 | Post created | Pocketful Team | Oct-15-25 |
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Best Pharma Mutual Funds in India
Written by : Pocketful Team
|Updated by : Pocketful Team
Published on : 15th October 2025
|Updated on : 15th October 2025
Pharma mutual funds and healthcare mutual funds are emerging as a great option for investors in 2025. Increasing healthcare needs, government schemes and increasing expenditure on research are strengthening this sector. In such a situation, the pharma sector mutual fund is useful for those who want stable and safe returns over a long period of time. In this blog, we will know which are the best pharma mutual funds India 2025, and how they can make your portfolio balanced and profitable.
What Are Pharma Sector Mutual Funds?
Pharma sector mutual funds are mutual funds that invest primarily in companies in the pharmaceutical, healthcare services, diagnostics, medical devices and biotechnology sectors. As per SEBI regulations, any sector fund is required to invest at least 80% in the same sector.
- Investment focus : Pharma mutual funds in India focus specifically on healthcare innovation, diagnostics, medical equipment and drug manufacturing. This way, investors can directly connect to the growth story of that sector.
- Difference from diversified funds : While diversified mutual funds spread investments across many different sectors (such as IT, banking, consumer goods), pharma sector mutual funds focus only on the healthcare and pharma industry. This is why the potential returns may be higher, but the risk is also higher.
Best Pharma Sector Mutual Funds 2025
| Fund Name | Current Nav | AUM | 3 years return | 5 year Return |
|---|---|---|---|---|
| Nippon India Pharma Fund | ₹512.99 | ₹8113.59Cr | 22.21% | 16.99% |
| SBI Healthcare Opportunities Fund | ₹433.98 | ₹3933.26Cr | 25.77% | 18.86% |
| Tata India Pharma & Healthcare Fund | ₹30.75 | ₹1295.83Cr | 22.87% | 17.27% |
| UTI Healthcare Fund | ₹292.65 | ₹1096.95Cr | 25.10% | 17.28% |
| ICICI Prudential Pharma Healthcare & Diagnostics Fund | ₹40.42 | ₹6226.82Cr | 28.40% | 20.07% |
| DSP Healthcare Fund | ₹39.12 | ₹3106.92Cr | 23.00% | 16.96% |
| LIC MF Healthcare Fund | ₹29.88 | ₹85.19Cr | 20.52% | 13.77% |
| Mirae Asset Healthcare Fund | ₹39.02 | ₹2761.64Cr | 21.63% | 17.17% |
| Aditya Birla Sun Life Pharma & Healthcare | ₹31.21 | ₹829.63Cr | 22.14% | 15.27% |
| ITI Pharma and Healthcare Fund | ₹16.40 | ₹226.5Cr | 20.47% | – |
1. Nippon India Pharma Fund
Nippon India Pharma Fund has a minimum SIP of ₹100 and is managed by Sailesh Raj Bhan. The fund invests in leading companies like Sun Pharma, Divi’s Labs, Lupin, Cipla, Dr. Reddy’s and Apollo Hospitals. The portfolio also includes companies like Medplus, Vijaya Diagnostic, GSK Pharma and Gland Pharma.
2. SBI Healthcare Opportunities Fund
SBI Healthcare Opportunities Fund has a minimum SIP of ₹500 and is managed by fund manager Tanmaya Desai. It invests in Sun Pharma, Divi’s Labs, Max Healthcare, Cipla, Lonza Group and Lupin and is suitable for long-term investors in the healthcare sector.
3. Tata India Pharma & Healthcare Fund
The minimum SIP of Tata India Pharma Fund is ₹100 and it is managed by Rajat Srivastava. The portfolio includes Sun Pharma, Cipla, Apollo Hospitals, Lupin, Repo Instruments, Healthcare Global, Torrent Pharma, Aster DM, Fortis and Alkem Laboratories.
4. UTI Healthcare Fund
The minimum investment in UTI Healthcare Fund is ₹500. Led by Fund Manager Kamal Gada, it invests in companies like Sun Pharma, Cipla, Ajanta Pharma, Lupin, Procter & Gamble Health and Dr. Reddy’s.
5. ICICI Prudential Pharma Healthcare & Diagnostics Fund
The minimum investment of ICICI Prudential Pharma Fund is ₹100. It is managed by Fund Manager Dharmesh Kakkad and the portfolio includes Sun Pharma, Dr. Reddy’s, Divi’s Labs, Cipla, Aurobindo Pharma, Lupin, Mankind Pharma, Alkem, Biocon and Tri-Party Repo.
6. DSP Healthcare Fund
DSP Healthcare Fund has a minimum investment of ₹100 and is managed by Chirag Dagli. The portfolio includes Cipla, Sun Pharma, Ipca Labs, Cohance Lifesciences, Laurus Labs and Gland Pharma.
7. LIC MF Healthcare Fund
LIC MF Healthcare Fund has a minimum SIP of ₹200. Led by Fund Manager Karan Doshi, it invests in Sun Pharma, Apollo Hospitals, Torrent Pharma, Cipla, Tri-Party Repo and Divi’s Labs.
8. Aditya Birla Sun Life Pharma & Healthcare Fund
Aditya Birla Sun Life Fund has a minimum SIP of ₹100. Fund Manager Dhaval Shah manages it and the portfolio includes Sun Pharma, Apollo Hospitals, Cipla, Fortis Healthcare, Abbott India and Torrent Pharma.
9. Mirae Asset Healthcare Fund
Mirae Asset Healthcare Fund has a minimum SIP of ₹99. Fund Manager Vrijesh Kasera manages it and the portfolio includes Sun Pharma, Divi’s Labs, Glenmark Pharma, Aurobindo Pharma, Cipla, Apollo Hospitals, Lupin, Dr. Reddy’s, Krishna Institute and Cohance Lifesciences.
10. ITI Pharma and Healthcare Fund
ITI Pharma Fund has a minimum SIP of ₹500 and is managed by Rohan Korde. The portfolio includes Sun Pharma, Divi’s Labs, Max Healthcare, Apollo Hospitals, Cohance Lifesciences and Torrent Pharma.
Read Also: Best Thematic Mutual Funds in India
Why Consider Pharma Mutual Funds in 2025?
1. Continuous increase in demand
The demand for healthcare and medicines has increased rapidly after the COVID-19 pandemic. This has made “Pharma Mutual Funds” an attractive option for investors as they offer stability along with good returns.
2. Export boom and India’s global role
India’s pharma exports reached $27.9 billion in FY 2023-24, which is about 9.3% higher than the previous year. This growth was almost double the global average.
India is now called the “Pharmacy of the World” as it supplies more than half of the world’s generic medicines. India alone meets 40% of the US and 25% of the UK’s generic drug needs.
3. Government initiatives
The PLI (Production-Linked Incentive) scheme of the Government of India has given new impetus to the pharma sector. Investment and production capacity in projects related to drugs and medical devices have increased rapidly. These initiatives have made pharma mutual funds even more attractive for investors.
4.Strong domestic demand base
Increasing diseases, lifestyle challenges and ageing population in India are continuously increasing the demand for healthcare services. Also, the coverage of health insurance is also expanding rapidly, giving an additional boost to the pharma sector.
5. India on the global supply chain
India’s drug manufacturing capacity and quality standards (such as US-FDA and WHO-GMP) have continuously improved. Due to this, it has become a reliable part of the global supply chain and India’s role in the pharma industry has become stronger.
Key Things to Check Before Investing in Pharma Sector Mutual Funds
- Performance record of the fund : Before investing in a pharma sector mutual fund, make sure to look at the CAGR (Compound Annual Growth Rate) of the last 3 years and 5 years. Funds that consistently perform well are considered reliable.
- Expense ratio : Sector funds often have a slightly higher expense ratio. Funds with a lower expense ratio can give better returns for investors in the long run.
- Expertise of the fund manager : Since pharma is a niche sector, it is very important to have an experienced fund manager. Their research and selection capabilities directly impact the returns.
- Volatility : Pharma funds are defensive in nature but during a bull run, they can give lower returns than sectors like IT or banking. Investors should be prepared for this volatility.
- Investment period : These funds are better suited for those with an investment horizon of 5 years or more. It is not right to expect them to last for a short period of time.
- Who should avoid : Pharma funds are not suitable for investors who are looking for short-term gains or have very low risk.
Read Also: List Of Best Pharma Stocks in India
Risks & Limitations of Pharma Mutual Funds
- Sector Dependency : Pharma mutual funds invest primarily in pharma and healthcare companies. This means that if there is a downturn in the sector, the fund’s performance can be directly affected. For example, the success or failure of a new drug, competition and changes in demand in the market can directly impact the NAV.
- Regulatory Risk : The healthcare sector is heavily regulated. FDA approvals, new drug policies, changes in drug prices or new government regulations can impact the fund’s performance. Sudden changes in regulations can lead to fluctuations in the fund’s returns.
- Volatility : The pharma sector is sometimes very volatile. Events such as the success of new drugs, expiry of patents, mergers or global health crises such as COVID-19 can impact the sector, leading to rapid changes in the fund’s NAV.
- Liquidity Risk : Some healthcare funds may have low liquidity. This means that if the investor wants to withdraw money immediately, it may take time. So invest only the amount that you can keep for a long period.
- Portfolio Diversification : Investment in these funds is limited to only one sector, so the risk can be high. Therefore, experts recommend that the portfolio should also be invested in other sectors and asset classes so that the overall risk is reduced and the investment remains safe.
Read Also: Top 10 Fund Managers in India
Conclusion
If you want to invest in the health sector, Pharma mutual funds are a practical option. These funds can give good returns in the long term and also provide an opportunity to be a part of the growing demand of the health sector. Yes, sometimes returns can be affected due to fluctuations in the sector or new regulations. So do not rush, do some research and invest only after balancing your money. If you invest money wisely, these funds can become a safe and profitable source for you.
Frequently Asked Questions (FAQs)
01
What are Pharma Mutual Funds?
Pharma mutual funds are funds that invest primarily in companies in the pharma and healthcare sector.
02
Who should invest in Pharma Mutual Funds?
Investors who want to participate in the long-term growth and growing opportunity of the healthcare sector can invest.
03
Are Pharma Mutual Funds risky?
Yes, there is some risk due to sector volatility and regulatory changes.
04
What is the minimum SIP amount?
The minimum SIP of most pharma mutual funds starts from Rs 100, but in some funds it can be Rs 500 or more.
05
How long should I invest in Pharma Mutual Funds?
It is better to have a long horizon of at least 3-5 years in these funds so that the returns are better and stable.
Disclaimer
The securities, funds, and strategies discussed in this blog are provided for informational purposes only. They do not represent endorsements or recommendations. Investors should conduct their own research and seek professional advice before making any investment decisions.
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