InvestorQ : Please suggest one pharma fund to invest ? Or let me know the companies which should must exists in the fund so that I can check and invest !!
Rohith made post

Please suggest one pharma fund to invest ? Or let me know the companies which should must exists in the fund so that I can check and invest !!

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Rutuja Nigam answered.
4 weeks ago


In fact most of the Pharma funds have done extremely well in the last six months with average returns on pharma funds exceeding 50% in most cases. Any of the large pharma funds with a good pedigree should serve your purpose. However, I think you should rather focus on individual pharma stocks.

For example, if you look at the API and CRAMS space, stocks like Granules and Sequent Scientific are not only looking attractive in terms of business growth but also in terms of valuations and the current price. In addition, you can also look at stocks like Cipla and Reddy Labs in the large cap space.

Most of the pharma funds are too focused on the large pharma stocks where most of the game is done and dusted. The bigger story could be in the smaller and mid cap pharma stocks where the API, contract research and the CRAMS model can play out more effectively. They are a necessary part of your portfolio.