Pharma, health care funds: Ignore correction, stay invested for long haul

Sector provides investment opportunity for the long term, according to experts

Pharmaceutical funds are the best-performing equity fund category over the past year, with an average return of 19.1 per cent. After two calendar years (CY) of strong returns in 2023 (37.1 per cent) and 2024 (41.4 per cent), however, they have corrected 7.3 per cent year-to-date in 2025.

 

“The pharma sector performed reasonably well last year, a volatile year for equities. Its defensive nature, steady earnings growth, and relatively attractive valuations compared to sectors like capital goods and consumer were the key drivers of its outperformance,” says Sailesh Raj Bhan, chief investment officer – equity investments, Nippon India Mutual Fund.