Top 5 Pharma Mutual Funds in India in 2026

#2 SBI Healthcare Opp Fund

The SBI Healthcare Opportunities Fund previously known as SBI Pharma Fund, the scheme primarily invests in pharmaceutical companies, hospitals, biotechnology firms, healthcare service providers, and medical equipment businesses to generate long-term capital appreciation.

The fund manages an Asset Under Management (AUM) of Rs 40.63 bn. From a risk and return perspective, the fund has a standard deviation of 14.71%, indicating moderate volatility within the healthcare segment.

Its Sharpe ratio of 1.08 reflects good risk-adjusted returns, while a beta of 0.84 suggests the fund has historically been less volatile than its benchmark.

How Does the Fund Invest?

The fund follows a bottom-up stock-picking approach, selecting fundamentally strong healthcare businesses across market capitalizations.

Its portfolio is diversified across large-cap, mid-cap, and small-cap healthcare stocks, with a notable tilt toward large-cap (35.59%) and mid-cap (32.89%) companies, while also maintaining some international exposure through American Depositary Receipts (ADRs).

Sector Allocation

Top Holdings

How has the Fund Performed Over Time?

The fund is benchmarked against the BSE Healthcare TRI. Over the last year, it delivered a return of 2.2% under the direct plan, outperforming the benchmark return of 1.4%.

Rs 10,000 Investment Growth Comparison

Over a three-year period, the fund generated 25.45%, slightly ahead of the benchmark return of 24.79%. Over a five-year horizon, the fund delivered 17.55%, outperforming the benchmark return of 15.09%.

If an investor had invested Rs 10,000 five years ago, it would have grown to approximately Rs 22,458, showcasing the fund's ability to generate competitive long-term returns through focused exposure to India's expanding healthcare and pharmaceutical ecosystem.

#3 UTI Healthcare Fund

The UTI Healthcare Fund is an equity mutual fund that follows a thematic investment strategy. The fund manages an Asset Under Management (AUM) of Rs 11.43 bn.

Its portfolio is market-cap agnostic but currently carries a strong tilt toward mid-cap and small-cap healthcare companies.

From a risk and return perspective, the fund has a standard deviation of 13.23%, indicating relatively moderate volatility. Its Sharpe ratio of 1.48 reflects strong risk-adjusted returns, while a beta of 0.91 suggests slightly lower volatility compared to its benchmark.

How Does the Fund Invest?

The fund maintains a diversified healthcare portfolio across large-cap, mid-cap, and small-cap stocks, with a notable bias toward smaller companies, where long-term growth opportunities may be higher.

The allocation currently stands at 26% large-cap, 25% mid-cap, and 49% small-cap.

Sector Allocation

Top Holdings

The portfolio is diversified across major pharmaceutical manufacturers, hospital chains, and healthcare service providers, with moderate concentration in top holdings.

How has the Fund Performed Over Time?

The fund is benchmarked against the BSE Healthcare TRI. Over the last year, it delivered a return of 8.33%, outperforming the benchmark return of 6.27%.

Rs 10,000 Investment Growth Comparison

Over 3 years, the fund generated 24.93%, slightly below the benchmark return of 25.35%. Over a 5-year horizon, the fund delivered 13.99%, marginally underperforming the benchmark return of 14.33%.

If an investor had invested Rs 10,000 five years ago, it would have grown to approximately Rs 19,253, reflecting the fund's steady long-term exposure to India's evolving pharmaceutical and healthcare sectors, particularly through its focus on mid-cap and small-cap opportunities.

#4 Tata India Pharma & Healthcare Fund

The Tata India Pharma and Healthcare Fund is an equity mutual fund that follows a thematic investment strategy, the fund manages an AUM of Rs 12.29 bn.

The expense ratio stands at 0.72% for the direct plan and 2.15% for the regular plan.

From a risk and return perspective, the fund has a standard deviation of 16.84%, indicating relatively high sector-specific volatility. Its Sharpe ratio of 0.81 reflects moderate risk-adjusted returns, while a beta of 0.91 suggests slightly lower volatility than its benchmark.

How Does the Fund Invest?

The fund maintains over 80% allocation to healthcare and pharma-related companies while diversifying across large-cap, mid-cap, and small-cap stocks.

The current portfolio has a strong tilt toward small-cap (39.74%) and large-cap (35.95%) companies, offering a blend of stability and growth potential.

Sector Allocation

Top Holdings

The portfolio is diversified across leading pharmaceutical firms and healthcare providers, with a balanced mix of mature and emerging healthcare businesses.

How has the Fund Performed Over Time?

The fund is benchmarked against the BSE Healthcare TRI. Over the last year, the fund delivered weaker performance, with returns of -10.73% compared to the benchmark's -5.81%.

Rs 10,000 Monthly SIP Growth Comparison

Over three years, the fund generated 7.62%, underperforming the benchmark return of 11.53%. Over a five-year horizon, the fund delivered 11.84%, also trailing the benchmark return of 14.28%.

If an investor had systematically invested Rs 10,000 every month over five years, the corpus would have grown to approximately Rs 8.07 lakh. While the fund has benefited from long-term healthcare sector growth, its recent historical returns have remained below benchmark performance.

#5 DSP Healthcare Fund

The DSP Healthcare Fund is an equity mutual fund that follows a thematic investment strategy focused on the pharmaceutical and healthcare sectors.

The fund manages an Asset Under Management (AUM) of Rs 31.42 bn. The expense ratio stands at 0.62% for the direct plan and 2.22% for the regular plan.

From a risk and return perspective, the fund has a standard deviation of 15.15%, indicating moderate-to-high sectoral volatility.

Its Sharpe ratio of 0.85 reflects balanced risk-adjusted returns, while a beta of 0.84 suggests lower volatility compared to its benchmark.

How Does the Fund Invest?

The fund maintains a diversified market-cap allocation with a notable bias toward small-cap healthcare companies, which currently account for 41.8% of the portfolio.

Additionally, the fund includes global healthcare exposure of up to 25%, allowing investors to benefit from international healthcare opportunities alongside domestic sector growth.

Sector Allocation

Top Holdings

The portfolio is diversified across major pharmaceutical players, healthcare providers, and diagnostics companies, with a mix of domestic leaders and growth-focused businesses.

How has the Fund Performed Over Time?

The fund is benchmarked against the BSE Healthcare TRI. Over the last year, it delivered a return of 4.87%, slightly below the benchmark return of 6.27%.

Rs 10,000 Investment Growth Comparison

Over three years, the fund generated 21.77%, underperforming the benchmark return of 25.30%. Over a five-year horizon, the fund delivered 13.64%, also marginally below the benchmark return of 14.33%.

If an investor had invested Rs 10,000 five years ago, it would have grown to approximately Rs 18,955. While the fund offers diversified exposure to both domestic and global healthcare opportunities, its recent performance has remained slightly below benchmark returns over medium-term periods.

Which Pharma Mutual Funds Are Best in India?

Pharma sector mutual funds offer investors exposure to India's expanding healthcare and pharmaceutical ecosystem.

While these funds can benefit from long-term sectoral growth, performance may vary based on market cycles and portfolio strategy.

Investors should carefully evaluate returns, risk metrics, and sector concentration before considering pharma mutual funds for their portfolio.

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