DSP Healthcare Fund

The DSP Healthcare Fund is a Sectoral/thematic mutual fund scheme that invests in companies within the healthcare theme. This healthcare theme includes industries such as pharmaceuticals, biotechnology, medical devices, healthcare services, and more.. To invest in the DSP Healthcare Fund, Click on the INVEST button on the webpage (Click here). If you are an existing DSP Mutual Fund investor, you can start investing immediately. If you are new to DSP Mutual Fund, you will need to create a portfolio by filling out the necessary details If you are new to mutual funds, you will have to comply with and fulfil the KYC requirements. You can also invest in DSP Healthcare Fund through your mutual fund distributor.

Returns of the DSP Healthcare Fund depend on market conditions, sector performance, the performance of individual companies in the underlying portfolio, the investment horizon, and other factors. Sectors within the healthcare theme, such as pharmaceuticals, are considered conservative. Historical trends from developed markets like the US show that medical costs rise with growth in per capita income (Source: American Medical Association) Since India's per capita income is expected to grow significantly in the coming decades, the long-term outlook for the healthcare theme is promising (Source: Deloitte).

Investors can check the past performance of the DSP Healthcare Fund by clicking on the (performance) section. You can view both lump-sum and SIP returns. We have displayed how the DSP Healthcare Fund has performed versus its benchmark index (BSE Healthcare TRI) and its additional benchmark (NIFTY 50 TRI) over the last 1, 3, and 5 years, as well as since its inception. Equity fund performance should always be evaluated over long investment periods.

The expense ratio is the percentage of the fund's assets used to cover expenses like administration, management, marketing, etc. Essentially, it is a percentage of your investment that goes toward the fund?s operating expenses and management fees. The expense ratio of the DSP Healthcare Fund can be seen on the TER page

Most mutual funds have two plans: direct and regular. In the case of the DSP Healthcare Fund, the expense ratio is higher for its regular plan and lower for its direct plan. Direct plans have a lower expense ratio, whereas regular plans have a higher expense ratio. Regular plans have a higher expense ratio because they are distributed/sold through an intermediary, i.e., a mutual fund distributor. A higher expense ratio for regular plans ensures that the mutual fund distributor also receives compensation for distributing/selling the mutual fund scheme.

• Since Healthcare is a moderately conservative theme it can possibly produce more consistent returns across investment cycles compared to cyclical industries.
• Healthcare is also a structural theme due to rising per capita income, increasing insurance penetration, growing government expenditure, and rising FDIs in healthcare (Source: National Institutes of Health). As our economy grows, the healthcare theme has the potential to create wealth for investors over a long investment horizon.
• Historical data shows that the healthcare index is less volatile than broad-based indices like the Sensex (Source: NSE)
• Even though the DSP Healthcare Fund is a thematic fund, it is diversified across multiple sectors like pharmaceuticals, hospitals, diagnostic centres, global medical equipment, health insurance, etc.
• Up to 25% international exposure not only provides richer diversification (low correlation to Indian healthcare companies), it also provides exposure investment opportunities in advanced areas of life sciences which are relatively less developed in India e.g. robotic surgery, genetic technology, gene sequencing etc.

Healthcare funds are equity-oriented schemes, and the risk profile of these investments is higher than traditional fixed-income investments; there is no guarantee of capital safety or assured returns in equity funds. Furthermore, being thematic funds, healthcare funds invest in just healthcare sectors and sub industries within the sector compared to diversified equity funds implying higher risk. Investors should consider other risk factors like regulatory risks (both local and foreign), clinical trial risks, geopolitical factors, technological disruptions etc. The healthcare sector is known for stability and resilience of earnings, as demand for healthcare services remains relatively consistent, investors should be aware of the risk factors and make informed investment decisions. Investors are advised to consult their financial advisors or mutual fund distributors to understand whether the DSP Healthcare Fund is suitable for their long-term investment needs.