NFO ending soon: Why Bajaj Finserv Healthcare Fund is a compelling investment opportunity
Dec 17, 2024
NewsVoir
Pune (Maharashtra) [India], December 17: The healthcare space in India is witnessing a significant growth. Post the COVID-19 pandemic, the focus on health, wellness, and medical infrastructure has increased, opening up opportunities for investors. The Bajaj Finserv Healthcare Fund is positioned to tap into these avenues and help investors potentially benefit from this growth story.
Following a megatrends strategy, this open-ended thematic equity fund invests in companies allied with the healthcare and pharma segments.
This article tells you more about the Bajaj Finserv Healthcare Fund, its megatrends approach, and why the Indian healthcare can offer a compelling investment opportunity.
India's healthcare landscape
The COVID-19 pandemic showed the importance of a strong healthcare system. It also highlighted the strength of India's research and technological facilities, as it emerged as a global supplier for vaccines. Simultaneously, it also stressed the importance of adopting healthy lifestyle habits and fostered a more health-conscious society.
Since then, India has worked on expanding its healthcare infrastructure, increasing investments in research and development, and improving access to medical services. Today, it is home to a rapidly growing pharmaceutical industry and is seeing significant innovation in diagnostics, vaccine manufacturing, and traditional medicines.
Sectors driving healthcare growth
The Indian healthcare sector encompasses various sub-sectors, each offering unique opportunities for growth and investment:
1. Pharmaceuticals: An emerging leading player in vaccine production, India's pharma sector continues to grow, fuelled by increasing domestic demand and export opportunities.
2. Hospitals and healthcare facilities: There is increased spending on hospitals, healthcare facilities and infrastructure, to meet the needs of a growing population and bring quality healthcare across the length and breadth of the country.
3. Health insurance: The health insurance market in India is underpenetrated and has potential for significant growth over the next few years.
4. Nutraceuticals: Products combining nutrition and pharmaceuticals are gaining popularity, driven by a growing focus on preventive health.
5. Diagnostic laboratories: The diagnostics sector has expanded significantly, with advanced testing facilities becoming essential for preventive and curative care.
6. CRAMS (Contract Research and Manufacturing Services): India's expertise in research and cost-effective manufacturing has positioned it as a preferred destination for global pharma and biotech companies.
7. Ayurvedic and traditional medicines: The blend of ancient remedies and modern practices has created a healthy market for holistic healthcare solutions.
8. The wellness wave: Growing awareness about fitness and wellness, coupled with rising lifestyle diseases, has made wellness products and services more mainstream.
MEGATRENDS strategy: A visionary approach
The Bajaj Finserv Healthcare Fund employs a MEGATRENDS strategy to identify and invest in long-term growth opportunities within the healthcare sector. This strategy focuses on major trends shaping the industry:
1. Regulatory megatrends: Supportive government policies, such as the Ayushman Bharat scheme, PLI initiatives for pharma, and increased spending on healthcare infrastructure, are driving growth.
2. Economic megatrends: Rising incomes, urbanization, and increasing healthcare spending by individuals are creating a robust economic environment for healthcare businesses.
3. Demographic megatrends: India's growing and aging population demands better healthcare services. Additionally, a rising middle class is driving consumption in areas like health insurance and wellness.
4. Social megatrends: Greater health awareness post-Covid has resulted in increased adoption of preventive care, diagnostics, and wellness practices, creating sustained demand.
Why invest in Bajaj Finserv Healthcare Fund?
Here's why Bajaj Finserv Healthcare Fund can be a suitable choice for long-term investors:
1. Wealth creation potential: Healthcare-related sectors are poised for significant growth, offering long-term wealth creation potential for early investors.
2. Focus on Megatrends: By identifying megatrends, the fund seeks to invest in areas with significant and lasting growth potential.
3. Healthy fundamentals: Healthcare-related sectors currently have healthy fundamentals and are favourably positioned for long-term growth potential.
4. How to invest in Bajaj Finserv Healthcare Fund
You can invest in the Bajaj Finserv Healthcare Fund both online and offline through several routes, including:
Directly through Bajaj Finserv AMC or through www.bajajamc.com
Through a registered distributor
Through our Registrar and Transfer Agent KFin Technologies Ltd. or KFintech
Through aggregator platforms.
During the NFO period (on till 20th December 2024), units will be available at a face value of Rs. 10. When the fund re-opens for subscription, units will be available at the applicable Net Asset Value. Investment options are available in both lumpsum and Systematic Investment Plan (SIP). The minimum investment amount is Rs. 500.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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