Synopsis: The article helps investors to determine which healthcare-based equity fund has provided better long-term investment results. It evaluates two funds, ICICI Prudential Pharma Healthcare & Diagnostics (PHD) Fund and SBI Healthcare Opportunities Fund, through their 5-year returns, expense ratios, investment strategies, and potential to generate wealth.
What if a small 1% difference in returns could significantly impact your long-term wealth? Healthcare mutual funds are gaining momentum as India’s pharmaceutical, diagnostics, and healthcare services sectors continue to expand. These funds provide strong growth potential, but their specific sector risks require careful fund selection. The right fund selection becomes vital because multiple funds provide similar returns, which will determine your future wealth accumulation.
ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund
- NAV: ₹43.11
- AUM: ₹6,293.14 Cr
- Expense Ratio: 2.02%
- Exit Load: 0.1% if redeemed within 15 days
- Performance Snapshot
- 3-Year CAGR: 28.1%
- 5-Year CAGR: 17.3%
- 3-Year Absolute Return: 104.8%
- 5-Year Absolute Return: 115.7%
- Category Comparison (5-Year)
- Fund 5-Year CAGR: 17.3%
- Equity sector Category Average: 14.6%
- Outperformance: +2.7 percentage points
SBI Healthcare Opportunities Fund
- NAV: ₹507.01
- AUM: ₹4,063.64 Cr
- Expense Ratio: 0.92%
- Exit Load: 0.50% if redeemed within 15 days
- Performance Snapshot
- 3-Year CAGR: 26.1%
- 5-Year CAGR: 16.8%
- 3-Year Absolute Return: 97.1%
- 5-Year Absolute Return: 113.7%
- Category Comparison (5-Year)
- Fund 5-Year CAGR: 16.8%
- Equity sector Category Average: 14.6%
- Outperformance: +2.2 percentage points
ICICI PHD vs SBI Healthcare Fund (5-Year Comparison)
Note: The NAV, AUM, expense ratio, and the ratios mentioned for the funds are sourced from Groww as of 30th April 2026.
Also read: Top 7 Small-Cap Mutual Funds Delivering up to 32% Returns in 3 Years: Bandhan Fund Leads
Which One is Suitable for You?
- Choose the ICICI Prudential PHD Fund, which offers higher 5-year returns and stronger category outperformance. The fund works best for investors who want to achieve aggressive growth through their investments in the healthcare sector.
- The SBI Healthcare Opportunities Fund because it has a lower expense ratio yet produces similar returns, which makes the fund suitable for investors who want to invest efficiently over a long-term period.
Key Takeaways
- Healthcare funds are sectoral and cyclical, so their future returns will experience fluctuations.
- The ICICI Prudential PHD Fund has given higher returns over the five-year period and has outperformed well.
- The SBI Healthcare Fund delivered similar returns, while its expense ratio is much lower than the other fund.
Conclusion
The ICICI Prudential PHD Fund provides better 5-year returns than all other funds, which makes it an ideal investment choice for people who want to achieve financial growth. The SBI Healthcare Opportunities fund provides similar returns yet costs investors less because it operates with a reduced expense ratio. The decision between higher returns and lower costs becomes essential because the performance difference is minimal.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or an investment recommendation. Historical performance determines the returns mentioned, which may not be sustainable 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.
