ITI Mutual Fund launches pharma and healthcare fund NFO

Asset management company, ITI Mutual Fund, has launched an open-ended equity scheme that will invest in pharma and healthcare companies. ITI Pharma and Healthcare Fund will be benchmarked against the Nifty Healthcare Total Return Index.

The Nifty Healthcare Index comprises companies involved in pharma, hospitals, medical devices and supplies, laboratories and diagnostics as well as medical insurance.

The new fund offer (NFO), which opened on 18 October, will close on 1 November.

The minimum application amount during the NFO period is ₹5,000 and in the multiples of Re 1, thereafter. The fund will be jointly managed by Pradeep Gokhale and Rohan Korde.

Announcing the launch of the NFO, George Heber Joseph, chief executive officer and chief investment officer, ITI Mutual Fund said, “The covid-19 pandemic has given a new thrust to the Indian pharma sector. ITI Pharma and Healthcare Fund is confident of offering a unique investment experience to its investors by adopting diligent and research-backed investment process. The fund house follows the investment philosophy of SQL – Margin of Safety, Quality of the business and Low Leverage and offers a superior investment experience to its investors.”

After years of underperformance, the Indian healthcare sector sprang into action post March 2020 as the first wave of covid-19 hit the country.

According to a recent NITI Aayog report, the healthcare industry has become one of the country’s largest in terms of both revenue and employment. It has been growing at a compounded annual growth rate (CAGR) of 22% since 2016, employing 4.7 million people directly.

Investors should note that as equity investing carries high risk, and they should allocate to these funds based on risk profile and asset allocation.

Launched in April 2019, ITI Mutual Fund has so far launched 13 mutual fund products. The fund house crossed ₹2,000 crore assets under management as of August 2021. Out of the total of ₹2,034 crore, equity AUM accounted for ₹1,460 crore while hybrid and debt schemes accounted for ₹230 crore and ₹344 crore, respectively. Mint