Table Of Contents
  • List of Best Healthcare Sector Mutual Funds
  • Frequently Asked Questions
Fund Categories

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

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17 Mutual Funds
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5Y return
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How is the AUM of Sector Healthcare Mutual Funds Growing?

In the past six months, the ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Growth has emerged as the leader in AUM growth, witnessing an impressive addition of ₹783.67 crore. This positions it as one of the top-performing Sector Healthcare mutual funds in terms of investor interest and fund growth.

Stocks Added by Best Sector Healthcare Mutual Funds

Over the last six months, 4 Sector Healthcare Mutual Funds have added Max Healthcare Institute Ltd to their portfolio. This move highlights the stock’s growing appeal in the segment as a promising investment.

Top Exits from Sector Healthcare Mutual Funds

In contrast, Alembic Pharmaceuticals Ltd has been exited by 3 of 17 Sector Healthcare Mutual Funds in the last six months. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.

Sector Healthcare Funds’ Sector allocation

Over the last 6 months, Sector Healthcare category has seen increased allocation towards Consumer Defensive, Health sectors and allocation in Energy, Industrial, Basic Materials sectors has decreased

Sectoral allocation of Sector Healthcare Funds
As of 15 Aug 2025
Sector
AUM
Health
Health

Increased by 13.10%, in last 6M

32.18K Cr
Basic Materials
Basic Materials

Decreased by 17.55%, in last 6M

553.64 Cr
Financial Services
Financial Services

Decreased by 0.27%, in last 6M

196.96 Cr
Consumer Defensive
Consumer Defensive

Increased by 24.69%, in last 6M

57.71 Cr
Tech
Tech

Decreased by 10.57%, in last 6M

21.61 Cr
Industrial
Industrial

Decreased by 79.67%, in last 6M

4.31 Cr
Energy
Energy

Decreased by 100.00%, in last 6M

0 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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