Over the last 15 months the entire equity market has been performing exceptionally well. Barring the FMCG index all the other equity indices have been up by more than 50 per cent in the given period. Among these, the performance of the pharmaceutical sector has been the theme of the last year. In the first six months after the deep cut in the equity market in March 2020, there was a strong rush among investors to own pharmaceutical stocks, which pushed up their prices. Between March 23, 2020, and September 2020, the Nifty Healthcare index was up by almost 73 per cent compared to the Nifty 500, which was up by 49 per cent in the same period. Such a move in pharmaceutical stocks attracted lot of investors towards the funds dedicated to this sector.
Pharmaceutical-dedicated funds have attracted huge inflows in last six quarters. The cumulative asset under management (AUM) of these funds has increased from `6,000 crore at the end of December 2019 to `14,000 crore at the end of June 2021, increasing by almost two and a half times. Such a rise in AUM is contributed by both rise in the mark to market gains and net inflows.
Nevertheless, the momentum has slowed down after that for the Nifty Healthcare index. In the first six months of 2021, Nifty Healthcare has been up by 15 per cent compared to the 18 per cent growth seen in Nifty 500. Such underperformance was also observed in the change in weightage of pharmaceutical companies in the overall equity holdings of mutual funds schemes. Analyzing the overall weight of healthcare companies in equity-dedicated mutual funds, we see that after touching a high in the month of September 2020, their weightage has declined.
Bu hikaye Dalal Street Investment Journal dergisinin July 19, 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Dalal Street Investment Journal dergisinin July 19, 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
