PERFORMANCE EVALUATION OF PHARMACEUTICAL SECTOR-SPECIFIC MUTUAL FUNDS IN INDIA

Abstract

Mutual fund industry in India has seen significant expansion over the past decade and has provided investors with great returns, despite being exposed to market risks. With over a thousand schemes available, investors can select funds that match their risk appetite, based on factors such as market capitalization, diversification, sector, and themes. While many sectors experienced downturns during the Covid-19 pandemic, Pharma and Healthcare sector performed exceptionally well, generating substantial returns for investors. This study specifically focuses on evaluating the performance of various Mutual Fund (MF) schemes which have made investment primarily in Pharmaceutical Sector as the sector is considered evergreen. The study analyzes the performance of pharma sector-specific eight schemes over a four-year timeframe (FY2019-20 to FY2022-23), over various parameters like beta, Sharpe ratio, Treynor ratio, Jensen’s alpha, etc. thereby providing insights into the dynamics of Pharma sector mutual funds. The Study provides insights on performance of Pharma Sector-specific mutual funds in India with reference to their Assets under Management (AUM), expense ratios, volatility, and deviation from normal returns, in addition to performance of these funds during Covid-19.