Pharma funds are those funds that invest in companies engaged in the pharmaceutical sector. These are also called as healthcare-themed mutual funds that invest specifically in the companies belonging to or closely related to the healthcare sector. Now, coming to your second question, “timing” your mutual fund investments is not as important as “time-in” mutual funds. Investing, especially in mutual funds should never be done according to trends.

Equity mutual funds are generally a long-term investing phenomenon, and taking a myopic view, in this case, will undermine your gains and could also lead to losses. It's risky for retail investors to invest in sector-specific funds without understanding the industry as a whole. If you have conviction in the sector backed by fundamentals, then definitely you can go ahead.

If you want to invest in a pharma mutual fund just because it is the flavor of the season, you will be better off investing in multi-cap funds. Multicap funds are well suited for investors as they have a mandate to invest across sectors and market capitalization, giving leeway to fund managers to realign funds where opportunity exists.