Are you considering investing your money in something secure but expanding? The pharma industry may be the way to go! Pharma industry mutual funds invest your money in firms that manufacture drugs, medical devices, or provide healthcare services. These funds are thrilling for 2025 because healthcare is always required, and it’s expanding rapidly with new technology and more people taking their health seriously.
In this blog post, we’ll consider the 7 best pharma sector mutual funds for 2025. We’ll describe them in plain terms, provide a comparison table so you can view them side by side, sum up with a conclusion, and answer some frequently asked questions. Let’s get started and explore which fund could be suitable for you!
Introduction to Pharma Sector Mutual Funds
Pharma industry mutual funds are an investment where your funds invest in companies that are associated with medicine. Consider companies that produce medicines, construct medical devices, or operate hospitals. These are unique because they only specialize in this one thing, as opposed to other money that spreads it over numerous industries.
Why would they be a great idea for 2025? Healthcare is booming! More individuals are aging and require care, there are increasingly new drugs being developed, and everybody’s paying more attention to staying healthy. This expansion may translate to higher profits for these firms, which could cause your investment to increase as well. But because these funds remain in a single sector, they are somewhat risky—if the pharma sector does poorly, your money could suffer.”. Let’s find out the top choices to make it easy for you to decide.
7 Best Pharma Sector Mutual Funds for 2025
Here are the seven best pharma sector mutual funds you should learn about for 2025. We’ll describe each one so that you know exactly what they have to offer.
1. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund
This fund is a giant name in the pharma industry. It invests in companies that make medicines, provide healthcare services, and run diagnostics—like labs that test your blood. It’s got a huge Assets Under Management (AUM) of ₹5,320 crores, showing lots of people trust it. Over the past five years, it’s grown at about 25% per year (that’s the 5-year CAGR), which is pretty impressive. Imagine investing ₹10,000 five years ago—it could be worth over ₹30,000 now!
The fund selects good companies such as Sun Pharma and Dr. Reddy’s Laboratories. It is good if you prefer a blend of large and medium companies. But because it is all about health, it can fluctuate more than other funds. If you do not mind some fluctuations for high growth, this could be your choice.
2. SBI Healthcare Opportunities Fund
The SBI Healthcare Opportunities Fund is also a good option. It invests in all sorts of healthcare businesses—large ones, medium ones, and even smaller, expanding ones. Its 5-year CAGR is more than 25%, which indicates it’s been growing rapidly. With an AUM of ₹3,522 crores, it’s also popular.
What’s great about this fund is it doesn’t only play pharma—it also includes healthcare services and medical equipment manufacturers. This diversification can decrease your risk slightly from funds that specialize in medicines. If you wish for a fund to go into various areas of healthcare and has been doing great, then this one is a consideration. It’s ideal for those who prefer a mix of everything.
3. DSP Healthcare Fund
The DSP Healthcare Fund is future-oriented. It invests in those companies that are developing new medical concepts, such as innovative treatments or technology, both domestic as well as international. It has a 5-year CAGR of approximately 23% and an AUM of ₹3,340 crores, so it’s performing well.
What’s unique about it? It can invest some money in global companies, not only Indian ones. This provides you with an opportunity to profit from healthcare expansion globally, but at the same time, it implies additional risks such as currency fluctuations. If you’re enthusiastic about innovation and can accept a bit of adventure, this fund could be for you. It’s ideal for you if you think healthcare’s next revolution is just around the corner.
4. Mirae Asset Healthcare Fund
Mirae Asset Healthcare Fund is newer but also already stirring waters. It invests in pharma, biotech, and healthcare service firms. It has a 3-year CAGR of nearly 20%, indicating it’s been performing well recently, and its AUM is ₹2,864 crores.
This fund is good for those who want to catch the demand growth in health care. People managing it know the sector pretty well, and the companies they pick are good growth prospects. While not too old, the recent experience of the fund makes it qualify for a possible spot as one of the ones you must consider. It seems to be a balanced bet with good returns and doesn’t carry much risk.
5. Nippon India Pharma Fund
Nippon India Pharma Fund is a seasoned one—it has been in business for more than 20 years! It invests primarily in large, stable pharma firms such as Sun Pharma and Cipla. Its 5-year CAGR stands at approximately 22%, and its AUM is ₹1,150 crores.
This fund is ideal if you desire something stable. Because it invests in popular companies, it’s less risky than funds gambling on smaller companies. It’s a hit among those who prefer steady growth without too many shocks. If you’re a beginner to pharma funds or simply desire something that you can rely on, Nippon India Pharma Fund is a sure shot for 2025.
6. Tata India Pharma & Healthcare Fund
The Tata India Pharma & Healthcare Fund blends large and mid-cap pharma and healthcare companies. Its 3-year CAGR is roughly 21%, and it has an AUM of ₹890 crores. It’s growing well.
This fund plays it safe—it selects companies that are sound and will grow with time. The managers emphasize quality, making it an excellent middle-of-the-road pick. It’s not as glamorous as some funds, but it’s reliable and has promise. If you’re seeking a fund that’s not overly risky but still promises growth, this fund may be in your 2025 plans.
7. Aditya Birla Sun Life Pharma & Healthcare Fund
The Aditya Birla Sun Life Pharma & Healthcare Fund takes a more cautious approach. It invests in healthcare services, diagnostics, and pharma, with an AUM of ₹754 crores and a 5-year CAGR of about 19%.
This fund is less volatile than others, so it’s a great one for beginners or for people who don’t care for big fluctuations in their investments. It still lets you ride the healthcare boom, but with a smoother ride. If you’re new to investing or prefer less stress, this fund is an intelligent choice for 2025.
Comparison Table: 7 Best Pharma Sector Mutual Funds for 2025
Here’s a quick table to compare these funds:
| Fund Name | AUM (in crores) | Expense Ratio | 3-Year CAGR | 5-Year CAGR | Launch Date |
|---|---|---|---|---|---|
| ICICI Prudential P.H.D Fund | ₹5,320 | 1.08% | 25% | 25% | July 2018 |
| SBI Healthcare Opportunities Fund | ₹3,522 | 0.97% | 23% | 25% | December 2004 |
| DSP Healthcare Fund | ₹3,340 | 0.57% | 21% | 23backs | November 2018 |
| Mirae Asset Healthcare Fund | ₹2,864 | 0.49% | 20% | N/A | July 2018 |
| Nippon India Pharma Fund | ₹1,150 | 1.20% | 22% | 22% | June 2004 |
| Tata India Pharma & Healthcare Fund | ₹890 | 0.91% | 21% | 19% | May 2018 |
| Aditya Birla Sun Life Pharma & Healthcare Fund | ₹754 | 1.10% | 19% | 19% | June 2019 |
Note: Numbers are approximate based on 2025 data. Check the latest info before investing.
Conclusion
Pharma industry mutual funds can be a wonderful means of accumulating money in 2025 with healthcare going up. Funds such as ICICI Prudential P.H.D Fund, SBI Healthcare Opportunities Fund, and DSP Healthcare Fund are justifiably favorites because of their impressive performance and clever management. Each has something different to offer—whether it is massive growth, a blend of firms, or specialty in fresh ideas.
But here’s the twist: because these funds concentrate on pharma and healthcare, they can be a little risky. If the industry booms, you’re a winner. If it fails, you’ll lose some value. So, consider how much risk you can handle and what you’re hoping to get out of your investment. Investing small or doing it through an SIP (where you invest a small amount every month) may be a good idea. Chat with a financial advisor if you’re unsure—these funds could be a great fit with the right plan!
FAQs
1. What are pharma sector mutual funds?
These are funds that invest in companies tied to healthcare—like drug makers, medical equipment companies, and hospitals.
2. Why invest in pharma sector mutual funds in 2025?
Healthcare is growing fast with more older people, new tech, and health focus. This could mean more profits and better returns.
3. How do I choose the best pharma sector mutual fund?
Check its past growth (like 3-year or 5-year CAGR), the expense ratio, and if it matches your risk level. Look for good managers too.
4. What are the risks of pharma sector mutual funds?
They stick to one sector, so if pharma struggles (like with new rules or slowdowns), your money could drop. They’re best for people okay with some risk.
5. Can I invest in these funds through SIP?
Yes! You can invest a fixed amount every month with an SIP. It’s an easy way to start and spread out your risk.
Disclaimer:
The information presented in this article is for general informational purposes only. It does not constitute financial, investment, or professional advice. Commodity prices and market conditions can change rapidly; before making any investment or trading decisions, you should conduct your own due diligence and consult with a qualified financial advisor or other professional. The author and publisher assume no responsibility for losses or damages resulting from any actions taken based on the content of this post.
