Poor show by pharma MF in 2021: Will they recover?
Dec 24, 07:12
After a healthy 2020, pharma sector funds have been under the weather this year. These funds usually invest in pharmaceutical and healthcare companies, and some in overseas-listed companies. After a strong start, these funds took a backseat as economies started opening up and investors preferred cyclical stocks over defensive sectors. In 2021, pharma funds gave only 11.62 percent returns; the least among sector funds. Diversified funds did better: large-cap funds gave 20 percent, and mid and small cap funds gave more than 40 percent, on an average. As markets turn volatile in anticipation of rise in interest rates, informed investors can put some money in pharma funds for a defensive allocation.
Defensive Prescription