The pharmaceutical sector is paving steps towards a new era of growth and development. In recent years, its contribution to the GDP of India is acknowledgeable and still increasing. Indian Pharma Industry is emerging as a market winner in national and international markets. So, it is an excellent decision to invest in Pharma funds? And what does Investment Pharma funds all about? Let’s sneak out at the whole concept.
Indian Pharma Industry- A market winner!
Amongst the global demand for drugs and medicines, the Indian Pharma Industry alone contributes to fulfilling 40% of the US demand for generic drugs. Even in the UK, India supplies 25% of the total medicinal requirements. India successfully exports high-quality medicines to around 200 countries globally, and even the domestic market is flourishing equally.
Solely within the country, overall drug consumption in the year 2019 was USD 20 Billion which registered a growth rate of 9.6% by the next year. Also, the entire industry earned an overall foreign exchange of almost USD 10 Billion. It includes all types of drugs, herbal products, surgical equipment, and intermediaries.
While most of the Pharma Industry flourished in recent times, there are also few challenges faced by them. Price drops of around 10% in the US market for India’s generic drugs due to some loopholes emerged as a small issue. However, recent amendments in the regulatory compliance enforced by the Government in helping in coping with the setback.
Is Investment Pharma funds a good idea?
A recent review statement by Mr. Gaurav Seth, Head from ZFund’s research and content dept expressed the new facet of the Pharma sector in India. His 17 years of experience in this field gave a very close observance to the entire situation. As per his statement, “The current pandemic situation has created an opportunity for the Indian pharma sector. The Indian industry has always been a high production and low-cost player in the global scheme of things. However, the one place that our companies have probably lacked is the R&D space.”
He further continued, “Also, another headwind for the Indian pharmaceutical companies might be the availability of raw materials such as APIs which were imported from China. We do expect and hope that the Government will lend the required support for Indian companies to start their own production of the raw materials and become Atmanirbhar.”
Here are the top reasons why investment in Pharma funds is undoubtedly a smart choice:
- Experts speculate the substantial growth rate of almost 5% in the Pharma industry in the fiscal year. Many analysts also suggest that investing in pharma funds can show up steep growth of almost double rate in upcoming 4 to 5 years.
- After the splurging COVID-19 cases in China and other affected countries, India explored different perspectives to avail a top position in global pharma markets. Until now, many top tier countries were dependent on China to buy API and chemicals for drug formulation. However, after the recent pandemic followed by an extended lockdown; the supply chain diversified to India for better reasons.
- Besides, the COVID-19 scenario multiplied the demand for necessary drugs and medicines in the domestic and foreign markets.
- An overall rising CAGR of around 30% indicates the future prospect of Pharma Industry and lucrative returns by making investments in it. Switching to investment Pharma funds ensures a constant and growing rate of return these days. These equity-based mutual funds can provide you with a high prospect of earnings and booming up your finances. And especially if you have an understanding of the Pharma market, investment, and stocks; this can be a big move for your success!
You can also hire professional fund managers who can impart great returns against investments. Portfolio management is also a good idea as it emphasizes diversification of risks. Hence, making investments in various entities like chemical manufacturing companies, healthcare services, hospitals, generic drug providers, and biotechnology can offer effective outcomes. Seeking assistance from an investment manager can also help in making investments through rotational funds.
Wrap up
Hence, you must invest in the pharma funds as their equities are shining out at an incredible pace. And to confirm your decision, refer to the analysis and surveys of experts who determine that these funds can offer impeccable returns in the coming future. However, common advice suggests that investors in the pharma Industry should not just concentrate on myopic gains. Instead, they should invest for at least a term of 5 years through options like SIPs. This can be a safer option to ascertain growth in volatile stock markets with a long-term investment vision!
