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Healthcare Sector Mutual Funds
Healthcare mutual funds invest in companies operating in the healthcare sector, including pharmaceuticals, hospitals, medical devices, and health insurance. These funds are suitable for investors with a high-risk appetite and a long-term investment horizon who want to capitalise on the growth potential of the healthcare industry. According to SEBI regulations, these funds must invest at least 80% of their assets in equity and equity-related instruments of healthcare companies.
List of Best Healthcare Sector Mutual Funds
AUM Growth of Sector Healthcare Mutual Funds - January 2026
In the past one month, the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹110.48 crore. This positions it as one of the top-performing Sector Healthcare mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | |
|---|---|---|---|
 ICICI Prudential Pharma Healthcare and Diagnostics P.H.D Fund Current AUM: 6.46K Cr | +₹110.48 Cr | 1.72% | Invest |
 WhiteOak Capital Pharma and Healthcare Fund Current AUM: 508.73 Cr | +₹24.47 Cr | 5.10% | Invest |
 HDFC Pharma and Healthcare Fund Current AUM: 1.98K Cr | +₹8.56 Cr | 0.44% | Invest |
 SBI Healthcare Opportunities Fund Current AUM: 3.99K Cr | +₹5.25 Cr | 0.13% | Invest |
 UTI Healthcare Fund Current AUM: 1.1K Cr | +₹2.46 Cr | 0.22% | Invest |
Top Stock added by Sector Healthcare Mutual Funds - January 2026
Over the last month, Dr. Lal PathLabs Ltd has been added to the portfolios of 7 out of 18 Sector Healthcare mutual funds. This signals growing confidence in the stock’s long-term growth prospects among Sector Healthcare fund managers.
Top Stock sold by Sector Healthcare Mutual Funds - January 2026
In contrast, Biocon Ltd has been sold by 5 of 18 Sector Healthcare mutual funds in the last one month. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.
Sector allocation of Sector Healthcare mutual funds - January 2026
Over the last 6 months, Sector Healthcare category has seen increased allocation towards Energy, Consumer Cyclical, Consumer Defensive sectors and allocation in Tech, Financial Services sectors has decreased
Sector | AUM |
|---|---|
 Health Increased by 4.03%, in last 6M | 32.05K Cr |
 Basic Materials Increased by 1.73%, in last 6M | 581.11 Cr |
 Financial Services Decreased by 52.69%, in last 6M | 79.71 Cr |
 Consumer Defensive Increased by 14.74%, in last 6M | 59.92 Cr |
 Energy Increased by 100.00%, in last 6M | 25.88 Cr |
 Consumer Cyclical Increased by 100.00%, in last 6M | 23.71 Cr |
 Industrial Increased by 0.07%, in last 6M | 2.39 Cr |
 Tech Decreased by 99.70%, in last 6M | 0.07 Cr |
Frequently Asked Questions
Are healthcare funds suitable for beginners?
Given their high-risk nature, healthcare funds are generally more suitable for experienced investors who understand the sector's dynamics and risks. Beginners should approach these funds with caution and consider them as a small part of a well-diversified portfolio.
How do healthcare funds compare to broader market funds?
Healthcare funds have the potential to deliver higher returns than broader market funds during periods of strong performance in the healthcare sector. However, they are also more susceptible to sector-specific risks and can underperform the broader market at times.
How do healthcare sector funds differ from pharma funds?
Pharma funds focus only on pharmaceutical companies, while healthcare funds may include a broader range, hospitals, diagnostics, biotech, and healthcare tech firms.
What are the risks involved in healthcare mutual funds?
Healthcare sector mutual funds include risks like sector concentration risk, regulatory risk and high volatility.
How do healthcare sector funds differ from pharma funds?
Pharma funds focus only on pharmaceutical companies, while healthcare funds may include a broader range of hospitals, diagnostics, biotech, and healthcare tech firms.
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