SBI Healthcare Fund

Introduction

SBI Healthcare Opportunities Fund-Growth is a Sectoral Pharma mutual fund scheme from SBI Mutual Fund. This fund has been in existence for over 22 years after its launch in July 1999. The fund has Rs. 2,048 Crores worth of Assets Under Management (AUM) as of June 2021 and is categorized as a medium-sized fund. SBI Healthcare Opportunities Fund-Growth provided returns of 34.62% in the last 1 year, and also delivered 16.64% of average annual returns.

The scheme’s ability to deliver returns consistently is lower than most funds of its category and the ability to control losses in a falling market is low. The fund has invested the majority of its money in Healthcare and taken less exposure in Healthcare, Construction sectors compared to other funds in the category.

Key information

1. The Current Net Asset Value(NAV) of the SBI Healthcare Opportunities Fund is Rs. 235.91 for its Regular plan and Rs. 259.39 for its Direct plan.

2. The trailing returns over different periods are 39.95%(1 year), 21.2%(3 years), 10.31%(5 years), and 16.62%(since launch). Whereas, Category returns for the same time duration are 41.56%(1 year), 24.18%(3 years), and 13.42%(5years).

3. The Fund currently holds Assets under Management(AUM) worth Rs. 2048 Crores as of June 2021.

4. The expense ratio of the fund is 2.23% for the Regular plan and 1.05% for the Direct plan as of July 2021.

5. SBI Healthcare Opportunities Fund shall attract an Exit Load of 0.50% if redeemed within 15 days.

6. Minimum investment required is Rs. 5000, the minimum additional investment is Rs. 1000 and the Minimum SIP investment is Rs. 500.

Investment Strategy of SBI Healthcare Mutual Fund

SBI Healthcare Opportunities Fund seeks the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities in the Healthcare space and provide long-term gain to its customers. It is benchmarked against S&P BSE Healthcare Index.

Asset allocation

1. The asset allocation of the fund comprises around 96.94% in equities, 0.0% in debts, and 3.06% in cash & cash equivalents.

2. The fund’s top 10 equity holdings comprise around 67.26% and the top 5 sectors combine around 42.93% of the accumulated assets.

3. The fund largely invests across a blend of market capitalizations around 66.2% in giant & large-cap companies, 24.39% in mid-cap, and 9.41% in small-cap companies.

Portfolio

  • No of stocks – 24.
  • Top 10 Stocks – 67.26%.
  • Top 5 Stocks – 42.93%.
  • Price-Book(P/B) ratio – 4.54.
  • Price-Earnings(P/E) ratio – 30.79.

Top 10 stocks

I. Sun Pharmaceuticals Industries – 10.85%.
II. Divi’s Laboratories – 9.09%.
III. Cipla – 8.33%.
IV. Dr. Reddy’s Laboratories – 8.27%.
V. Aurobindo Pharma – 6.39%.
VI. Lupin – 6.17%.
VII. Max Healthcare Institute – 5.08%.
VIII. Apollo Hospitals – 4.85%.
IX. Alkem Laboratories – 4.54%.
X. Narayana Hrudayalaya – 3.69%.

SBI Healthcare Fund Regular Growth Plan

Details :

I. NAV – Rs. 235.91.
II. IDCW – Rs. 148.61.
III. Returns – 16.64%(since launched on July 1999).
IV. Returns per year(5 years avg) – 9.96%.
IV. Benchmark – S&P BSE Healthcare TRI.
V. Risk – Very High.
VI. Type – Open-ended.
VII. Asset Under Management(AUM) – Rs. 2,048 Crores(as of August 2021).
VIII. Expense ratio – 2.23%.
IX. Turnover – 37%.

Minimum investment – Rs. 5000.
Minimum additional investment – Rs. 1000.
Minimum SIP Investment – Rs. 500.
Minimum no of cheque – 12.
Minimum withdrawal – Rs. 500.
Lock-in the period – not applicable.
Exit load – 0.5% for redemption within 15 days.

SBI Healthcare Fund Direct Growth Plan.

Details :

I. NAV – Rs. 259.39.
II. IDCW – Rs. 180.21.
III. Returns – 18. 25%(since launch in January 2013).
IV. IV. Returns per year(5 years avg) – 11.21%.
IV. Benchmark – S&P BSE Healthcare TRI.
V. Risk – Very High.
VI. Type – Open-ended.
VII. Asset Under Management(AUM) – Rs. 2,048 Crores(as of August 2021).
VIII. Expense ratio – 1.05%.
IX. Turnover – 37%.

Minimum investment – Rs. 5000.
Minimum additional investment – Rs. 1000.
Minimum SIP Investment – Rs. 500.
Minimum no of cheque – 12.
Minimum withdrawal – Rs. 500.
Lock-in period – not applicable.
Exit load – 0.5% for redemption within 15 days.

Taxation of SBI Healthcare Fund

I. Gains over Rs. 1 lakh are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.
II. No tax is to be paid as long as you continue to hold the units.
III. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG). Any cess/surcharge is not included.
IV. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

Dividends,
I. Dividends are added to the income of the investors and taxed according to their respective tax slabs.
II. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

Who should invest

Investors who have advanced knowledge of macro trends and prefer to take high risk for higher returns compared to other Equity funds and also prepared for the possibility of moderate to high losses in their investments even though the overall market is performing better. Risk-averse investors should avoid funds that have a narrowly defined investment mandate such as this one. Instead, they should invest in multi-cap funds expecting maximum possible gains.

Fund manager

Mr. Desai is currently managing SBI Healthcare Opportunities Fund. He is a B.E(Electronics), MBA(Finance), and CFA(Level III). Before joining SBI Mutual Fund he has worked with D.J. Sanghvi College of Engineering and Patni Computer Systems Ltd.

Contact

Address – SBI Funds Management Ltd, 9th Floor-Crescenzo, C-38 & 39-G Block, Bandra-Kurla Complex, Bandra (East) Mumbai – 400051
Phone – 022-61793000 / 1800-425-5425
Fax – 022-22189663
E-mail – [email protected]
Website – http://www.sbimf.com

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