Nippon India Mutual Fund launches new fund offer of Nippon India Nifty Pharma ETF
Bull run in Indian stocks has given investors many winners – pharma sector is one of them. To offer one more alternative to invest in stocks of companies in pharma sector, Nippon India Mutual Fund has unveiled the new fund offer of its exchange traded fund – Nippon India Nifty Pharma ETF (NNP).
Pharma sector in India is seen as a defensive bet. It has low correlation with Nifty 50 index. In the last one month Pharma funds as a category gave 10.25% returns. NNP will track the Nippon India Nifty Pharma Index. This being a passive strategy the expense ratio is expected to be lower than the active funds.
As of now there 12 pharma schemes that are focused on pharma stocks. These schemes put together manage assets worth Rs 14,949 crore. The largest pharma fund – an actively managed strategy, with assets under management of Rs 5,238 crore is run by Nippon India Mutual Fund.
The ETF offering will do away with the fund manager risk and offer a low cost investment avenue to the fund manager.
The NFO opened today and will close on June 28, 2021.
Equity: Sectoral-Pharma
| Fund Name | Expense Ratio (%) | 1 Yr Retrun (%) | Net Assets (Cr) |
| Aditya Birla Sun Life Pharma & Healthcare Fund – Regular Plan | 2.71 | 45.27 | 550.00 |
| Axis Healthcare ETF – Regular Plan | 0.22 | — | 28.00 |
| DSP Healthcare Fund – Regular Plan | 2.32 | 56.52 | 1311 |
| Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund – Regular Plan | 1.08 | — | 163.00 |
| ICICI Prudential Healthcare ETF | 0.15 | — | 20.00 |
| ICICI Prudential Pharma Healthcare And Diagnostics (P.H.D) Fund | 2.19 | 53.64 | 2683 |
| IDBI Healthcare Fund – Regular Plan | 2.57 | 42.19 | 76.00 |
| Mirae Asset Healthcare Fund – Regular Plan | 2.13 | 53.80 | 1595 |
| Nippon India Nifty Pharma ETF – Regular Plan | — | — | 0 |
| Nippon India Pharma Fund | 1.95 | 54.37 | 5238 |
| SBI Healthcare Opportunities Fund | 2.25 | 53.40 | 1899 |
| Tata India Pharma & HealthCare Fund – Regular Plan | 2.64 | 47.97 | 534.00 |
| UTI Healthcare Fund – Regular Plan | 2.69 | 51.28 | 852.00 |
| Source: Value Research |