There are numerous mutual funds categories and each allows prospective investors to choose a scheme based on a variety of factors, including the amount of risk that they want to take and the investment term. Right now, the mutual fund schemes investing in Pharmaceutical companies are outperforming the large markets in a one week time frame.
Reliance Pharma fund, for example, just delivered more than 2.95% returns over the one week period. This occurred regardless of the fact that BSE Healthcare increased 3.37% over the same period. But it doesn’t end there. UTI Pharma & Healthcare Fund (G), who invests mainly in pharma stocks, has illustrated outperformance by obtaining 2.85% returns in the week that just passed.
So what does this outperformance illustrate? Well, it shows buying interest in pharmaceutical stocks at lower levels.
Over the past month, the Reliance Pharma Fund produced negative 2.41% returns while the benchmark index increased by 2.19% over the same time period.
It’s important that you keep the following in mind if you’re planning on making a pharmaceutical investment. For the past year, Pharmaceutical funds have been underperforming due to the declining stock prices of pharma stocks. Nifty Pharma index, which is an index that records the performance of pharmaceutical companies, is down by more than 10% in the one year time frame.
Those who have invested in pharmaceutical stocks will be pleased (and relieved) to see outperformance in the near term.
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