The healthcare sector in India is witnessing rapid advancements and is poised for further growth.
To help investors tap into this potential, Bajaj Finserv Asset Management Ltd. has launched the Bajaj Finserv Healthcare Fund, an equity mutual fund that invests in sectors allied with healthcare. Following a megatrends strategy, the fund seeks to capitalise on existing and emerging opportunities in sectors related to the healthcare theme, such as hospitals, pharmaceuticals, diagnostics, nutrition, and more.
The New Fund Offer period for this scheme began on December 6th, 2024, and will end on December 20th, 2024.
Let’s explore the current and upcoming shifts in these sectors that make this a potentially advantageous time to invest.
Health and wellness in India have a rich history. Ancient practices such as Ayurveda and Yoga still hold relevance today and are now accompanied by innovation and advancements in modern medicine too. As a result, India is today a hub for traditional medicine as well as modern healthcare, with world-class hospitals, state-of-the-art diagnostic centres and a thriving pharmaceutical industry.
The Covid-19 pandemic was a wake-up call for the global healthcare ecosystem. In India, it acted as a catalyst for rapid growth across multiple sub-sectors.
● Vaccines: India emerged as a vaccine powerhouse, supplying doses globally.
● Diagnostics: The pandemic highlighted the importance of early detection, driving investments in advanced diagnostic technologies.
● Hospitals: Demand for quality healthcare facilities surged, leading to the expansion of hospitals and specialised care centres.
● Nutrition and wellness: An increased awareness about health has led to a growing demand for nutrition and wellness products.
This momentum has continued post-pandemic, with increased public awareness, higher healthcare spending, and policy support driving growth.
The Indian healthcare sector is vast, with multiple sub-sectors presenting attractive investment opportunities:
Pharmaceuticals: India is a key player in global drug manufacturing.
Hospitals and healthcare facilities: The demand for quality infrastructure is growing, fuelled by urbanisation and an aging population.
Health insurance: Increasing awareness has led to higher penetration of health insurance.
Nutraceuticals: Rising health consciousness has boosted the demand for dietary supplements and functional foods.
Diagnostic laboratories: Advanced testing and early detection services are witnessing exponential growth.
CRAMS (Contract Research and Manufacturing Services): India is a preferred destination for global pharmaceutical research and manufacturing outsourcing.
Wellness and lifestyle management: The increasing prevalence of lifestyle diseases such as diabetes and heart conditions has driven demand for preventive care and wellness products.
Medical tourism: India is emerging as a favoured destination for medical tourism, owing to its high-quality services at relatively affordable prices.
Over the last decade, the healthcare sector has outperformed the broader market over multiple horizons in the last decade, as per a study by Bajaj Finserv AMC. Here’s why it remains a compelling investment:
Relatively stable return potential: The sector has offered steady growth over the last 15 years, as per the study. This can make it suitable for long-term investors seeking relatively stable return potential.
Lower volatility: Healthcare investments have largely registered lower downside risks as compared to the broader market in the last 10 years.
Healthy fundamentals: With growing demand, policy support, and strong financial performance, the sector is poised for growth.
The Bajaj Finserv Healthcare Fund follows the MEGATRENDS strategy, which focuses on long-term growth drivers shaping the sector. Megatrends are widespread changes that can have lasting impact on societies and economies across the world. Here are some of the megatrends that this fund will focus on:
1. Regulatory megatrends: The Biosecure Act, 2024 is expected to double the CRAMS segment in India.
2. Economic megatrends: India’s economic growth is fuelling increased healthcare spending. Health insurance, which is currently underpenetrated in India, is likely to witness growth
3. Demographic megatrends: India’s population dynamics present unique opportunities. An aging population, growing life expectancy and a young demographic that is increasingly adopting preventive healthcare measures are likely to create balanced demand across the spectrum.
4. Social megatrends: The shift in societal attitudes towards wellness and lifestyle management is creating new avenues for growth.
● Multi-sectoral approach: The fund will invest in companies and sectors across the health and wellness space.
● Expertise: The fund will be managed by seasoned professionals with deep industry knowledge.
● Long-term growth potential: The fund offers the potential to build wealth in the long term by riding the healthcare boom.
● Potential growth stories: The megatrends approach can help investors tap into emerging opportunities early, before they reach their full potential.
During the New Fund Offer period, units can be purchased at the face value of Rs. 10. You can invest in SIP or lumpsum, with minimum investments starting at Rs. 500. You can invest online as well as offline, directly through Bajaj Finserv AMC or through a registered mutual fund distributor. You can also invest through our Registrar and Transfer Agent KFin Technologies Limited (“KFintech”) and aggregator platforms.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.