Sunday, 1 July 2018

Turning India’s improving health opportunities into wealth creation opportunities

Chennai, June 26, 2018: ICICI Prudential MF has announced the launch of ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund. The scheme aims to capitalize on the long-term growth story of Indian healthcare as a whole. Rising income levels, increased health awareness, improvement in treatment technologies and penetration of health insurance has led to healthcare being one of the fastest growing segments in the country. In fact, India has established itself as a global manufacturing and research hub, which contributes around 10% to the world productive volume.Sharing his views about the fund, Mr. Nimesh Shah, MD & CEO, said, “India continues to remain an under-penetrated market in terms of healthcare services and insurance.
 
As such, non-discretionary spend coupled with increasing awareness make the theme a structural story for long period of time. Due to higher growth, the pharma sector has always traded at a premium relative to the market but the premium has narrowed down significantly in last few years. The recent under performance of pharma stocks makes a strong case for investing now in this sector.”A renewed focus of the Government on providing healthcare facilities has put the spotlight back on this sector. In fact, the Government initiative, “Pharma Vision 2020” aims to make India a global leader in manufacturing as it enjoys the cost-efficient technology with the production cost around 40% lower than the western countries. ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund is an Open Ended Equity Scheme, which aims to generate long term capital appreciation by investing into the entire spectrum of health-related sub sectors. Currently, at ~5% of GDP, the spending in India is much lower than other developed and developing economies. Valuations are attractive and it’s a good long term opportunity for investments in pharmaceutical sector.

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