7 Best Pharma Sector Mutual Funds Delivering Up to 28.4% CAGR in the Last 3 Years

Synopsis: Pharma sector mutual funds invest in India’s pharmaceutical and healthcare companies, offering long-term growth by capitalizing on rising domestic and global demand for medicines, diagnostics, and healthcare services. This guide ranks the top-performing funds of 2026 based on 3 and 5 year-returns, fund size, and expense ratio.

India established itself as a worldwide pharmaceutical leader through its production of generic drugs and vaccines and its healthcare research activities. The growing global demand for the sector has created more interest in mutual funds that focus on specific industries. Pharma sector funds primarily invest in healthcare companies, which provide investors with better potential returns but higher investment risks than diversified equity funds. The process of selecting an appropriate fund needs performance metric assessment together with analysis of fund size and expense ratio data.

Top Pharma Sector Mutual Funds (2026)

1. SBI Healthcare Opportunities Fund Direct Plan – Growth

• NAV: ₹494.54
• AUM: ₹3,822.73 Cr
• Expense Ratio: 0.91%
• Exit load: 0.50% if redeemed within 15 days
• Monthly SIP: ₹500
• One Time: ₹5000

Performance snapshot: 

• 3-Year CAGR: 27.3%
• 5-Year CAGR: 18.4%
• 3-Year Absolute Return: 107.4%
• 5-Year Absolute Return: 130.5%

Category Comparison (5-Year):

• Fund 5-Year CAGR: 18.4%
• Healthcare Category Average (5-Year): 14.6% 
• Outperformance: +3.8 percentage points

2. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct – Growth

• NAV: ₹41.23
• AUM: ₹6,658.41 Cr
• Expense Ratio: 1.04%
• Exit load: 0.1% if redeemed within 15 days
• Monthly SIP: ₹100
• One Time: ₹5000

Performance snapshot: 

• 3-Year CAGR: 28.4%
• 5-Year CAGR: 18.0%
• 3-Year Absolute Return: 113.7%
• 5-Year Absolute Return: 129.2%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 18.0%
• Healthcare Category Average (5-Year): 14.6% 
• Outperformance: +3.4 percentage points

3. DSP Healthcare Fund Direct – Growth

• NAV: ₹41.62
• AUM: ₹2,971.07 Cr
• Expense Ratio: 0.66%
• Exit load: 0.50% if redeemed within 1 month
• Monthly SIP: ₹100
• One Time: ₹100

Performance Snapshot

• 3-Year CAGR: 22.9%
• 5-Year CAGR: 16%
• 3-Year Absolute Return: 80.8%
• 5-Year Absolute Return: 105.2%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 16%
• Healthcare Category Average (5-Year): 14.6%
• Outperformance: +1.4 percentage points

4.  Tata India Pharma & Healthcare Fund Direct – Growth

• NAV: ₹34.96
• AUM: ₹1,239.57 Cr
• Expense Ratio: 0.69%
• Exit load: 0.25% if redeemed within 30 days
• Monthly SIP: ₹100
• One Time: ₹5000

Performance Snapshot:

• 3-Year CAGR: 25.6%
• 5-Year CAGR: 17.1%
• 3-Year Absolute Return: 99.6%
• 5-Year Absolute Return: 119.3%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 17.1%
• Healthcare Category Average (5-Year): 14.6%
• Outperformance: +2.5 percentage point

5. Nippon India Pharma Fund Direct – Growth

• NAV: ₹573.48
• AUM: ₹7,875.40 Cr
• Expense Ratio: 0.91%
• Exit load: 1% if redeemed within 1 month
• Monthly SIP: ₹100
• One Time: ₹5000

Performance Snapshot

• 3-Year CAGR: 25.1%
• 5-Year CAGR: 16.7%
• 3-Year Absolute Return: 96.5%
• 5-Year Absolute Return: 115.8%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 16.7%
• Healthcare Category Average (5-Year): 14.6%
• Outperformance: +2.1 percentage points

6. Aditya Birla Sun Life Pharma & Healthcare Fund Direct – Growth

• NAV: ₹34.45
• AUM: ₹812.03 Cr
• Expense Ratio: 1.02%
• Exit load: 1% if redeemed within 30 days
• Monthly SIP: ₹100
• One Time: ₹1000

Performance Snapshot

• 3-Year CAGR: 25.7%
• 5-Year CAGR: 16%
• 3-Year Absolute Return: 99.1%
• 5-Year Absolute Return: 108%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 16%
• Healthcare Category Average (5-Year): 14.6%
• Outperformance: +1.4 percentage point

7. Mirae Asset Healthcare Fund Direct – Growth

• NAV: ₹44.01
• AUM: ₹2,639.92 Cr
• Expense Ratio: 0.48%
• Exit load: 1% if redeemed within 1 year
• Monthly SIP: ₹99
• One Time: ₹5000

Performance Snapshot

• 3-Year CAGR: 26.9%
• 5-Year CAGR: 17.8%
• 3-Year Absolute Return: 104.7%
• 5-Year Absolute Return: 125.7%

Category Comparison (5-Year)

• Fund 5-Year CAGR: 17.8%
• Healthcare Category Average (5-Year): 14.6%
• Outperformance: +3.2 percentage point

Note: The NAV, AUM, expense ratio, and the ratios mentioned for the funds are sourced from Groww as of 6th March 2026.

Also read: Best 4 Mutual Funds for Investors in Their 30s – Top Performer Delivered 18.86% CAGR in Past 5 Years

Who Should Consider These Funds

Pharma sector mutual funds serve as a suitable investment option for investors who want to achieve long-term growth over 5 to 7 years while investing in India’s healthcare and pharmaceutical sector. The investment strategy does not suit investors who prefer stable returns with minimal risk.

Conclusion

Pharma sector mutual funds show strong long-term growth potential through their investment in India’s healthcare and pharmaceutical markets. The top funds, SBI Healthcare Opportunities, ICICI Prudential PHD, and Mirae Asset Healthcare, have consistently delivered better performance than their respective category averages. The combination of these funds with diversified equity investments provides a solution to manage risk while achieving maximum investment returns.

Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.

Written by Ameet S