Pharma funds make a comeback; now rises 17.3% for a one-year period

Attractive valuations have spurred fund houses to launch new funds in this category as well

The rally in pharmaceutical stocks owing to the rupee depreciation and easing regulatory environment in the US has boosted the returns of mutual fund (MF) schemes that invest in this sector.

Pharma funds, which had been laggards for many months now, are now up 17.3 per cent for a one-year period, outperforming infrastructure and banking funds that gave returns of 2.3 per cent and 9.8 per cent, respectively, show data from Value Research. The benchmark BSE Sensex has returned 22 per cent, while the BSE Healthcare index has surged 16.5 per cent in the last one year.

Sun Pharma, Divi’s