Fund of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
In volatile market conditions, the pharmaceutical sector has consistently shown strong resilience. Over the past month, the pharma index has been among the most stable and defensive sectoral indices, registering the smallest decline compared to broader market indices. This defensive nature makes pharma sector funds especially appealing for risk-conscious investors seeking stability during periods of economic uncertainty. Since healthcare and pharmaceutical companies provide essential services, they are often seen as dependable portfolio components when market volatility rises. The Mirae Asset Healthcare Fund has delivered exceptional performance relative to its category average across all measured periods. Over the 6-month period, the fund generated a return of 1.56 per cent, clearly ahead of the category average decline of 1.81 per cent, resulting in an outperformance of 3.37 percentage points. Over 1 year, the fund posted returns of 4.97 per cent compared with the category average of 1.06 per cent, an excess return of 3.91 percentage points. Over the 5-year period, the fund delivered 15.43 per cent, surpassing the category average of 13.62 per cent by 1.81 percentage points.

This steady outperformance across different time horizons highlights the fund’s ability to generate superior risk-adjusted returns for investors. The fund’s portfolio is strategically concentrated in high-quality pharmaceutical and healthcare companies. Its top five holdings are Sun Pharmaceutical Industries (11.77 per cent), Divi’s Laboratories (8.16 per cent), Glenmark Pharmaceuticals (6.93 per cent), JB Chemicals & Pharmaceuticals (6.63 per cent), and Apollo Hospitals Enterprise (6.38 per cent). This focused yet diversified approach provides exposure to leading drug makers and healthcare service providers, helping reduce company-specific risk while retaining sector advantages. The portfolio reflects a balanced mix of largecap and quality Mid-Cap healthcare businesses with strong fundamentals and promising growth prospects, making it a compelling choice for wealth creation with lower volatility.

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