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

18 Mutual Funds
Rank
Exp. Ratio
ICICI Prudential Pharma Healthcare and Diagnostics P.H.D Fund
4.02%
27.76%
19.68%
2/8
1.03
₹6437 Cr
SBI Healthcare Opportunities Fund
0.48%
24.77%
18.98%
1/8
0.91
₹4082 Cr
Tata India Pharma & Healthcare Fund
1.19%
23.32%
17.92%
3/8
0.62
₹1325 Cr
Mirae Asset Healthcare Fund
1.97%
22.26%
17.91%
5/8
0.47
₹2821 Cr
DSP Healthcare Fund
-3.4%
22.39%
17.87%
4/8
0.56
₹3144 Cr
UTI Healthcare Fund
-0.21%
24.7%
17.2%
6/8
1.3
₹1125 Cr
Nippon India Pharma Fund
0.37%
22.07%
17.19%
7/8
0.89
₹8346 Cr
Aditya Birla Sun Life Pharma & Healthcare Fund
0.74%
21.83%
15.96%
8/8
1.03
₹847 Cr
LIC MF Healthcare Fund
-2.61%
20.88%
14.05%
-
1.22
₹88 Cr
PGIM India Healthcare Fund
0%
0%
0%
-
0.66
₹107 Cr

AUM Growth of Sector Healthcare Mutual Funds - December 2025

In the past one month, the WhiteOak Capital Pharma and Healthcare Fund Direct Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹18.62 crore. This positions it as one of the top-performing Sector Healthcare mutual funds in terms of investor interest and fund growth.

Top Stock added by Sector Healthcare Mutual Funds - December 2025

Over the last month, Cohance Lifesciences Ltd has been added to the portfolios of 4 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 - December 2025

In contrast, Gland Pharma Ltd has been sold by 3 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 - December 2025

Over the last 6 months, Sector Healthcare category has seen increased allocation towards Real Estate, Consumer Defensive, Financial Services sectors and allocation in Tech, Basic Materials, Energy sectors has decreased

Sectoral allocation of Sector Healthcare Funds
As of 07 Dec 2025
Sector
AUM
Health
Health

Increased by 12.13%, in last 6M

32.02K Cr
Basic Materials
Basic Materials

Decreased by 14.47%, in last 6M

549.2 Cr
Financial Services
Financial Services

Increased by 12.38%, in last 6M

152.44 Cr
Consumer Defensive
Consumer Defensive

Increased by 13.16%, in last 6M

61.73 Cr
Energy
Energy

Decreased by 6.74%, in last 6M

29.85 Cr
Real Estate
Real Estate

Increased by 100.00%, in last 6M

13.63 Cr
Industrial
Industrial

Increased by 12.16%, in last 6M

2.48 Cr
Tech
Tech

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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