The mutual fund schemes that invest in Pharma companies are seen outperforming the broader markets over the one week period.
Reliance Pharma fund has delivered over 2.95% returns over one week’s time even as the benchmark index BSE Healthcare has gained 3.37% over similar time-frame.
UTI Pharma & Healthcare Fund (G) is another fund that invests primarily in the pharma stocks that has shown outperformance by gaining 2.85% returns in the past one week.
This out-performance reflects buying interest in the pharma stocks at lower levels.
For the past one month, the Reliance Pharma Fund has generated negative 2.41% returns whereas the benchmark index has inched up by 2.19 % over the same period.
Pharma funds have been underperforming for over one year now owing to declining stock prices of pharma stocks. Nifty Pharma index that tracks the performance pf pharma companies is down by over 10% in the one year period.
Investors betting on pharma stocks would be relieved to see the outperformance in the near term.