Synopsis– This article discusses investment ideas in using ETFs and mutual funds in the healthcare and pharma sector in India. It compares Nippon India Nifty Pharma ETF and Motilal Oswal BSE Healthcare ETF with three mutual funds ICICI Prudential PHD Fund, UTI healthcare fund and SBI Healthcare Opportunities fund. A comparative analysis provides investors with an insight into how the funds and ETFs follow healthcare indices and opportunities in India’s growing healthcare sector.
Pharma and healthcare-focused funds are gaining traction as defensive and growth-oriented investments. This article explores their potential and highlights the top fund picks for 2025.
1. ICICI Prudential Pharma Healthcare and Diagnostics PHD Fund Direct Growth
- 5-Year SIP XIRR: 30.33%
- AUM: ₹6,103 Crores (as on 31-07-2025)
- Expense Ratio: 1.04%
- NAV: ₹43.24 (as on 21-08-2025)
- Minimum Lump Sum: ₹5,000
- Minimum SIP: ₹100
- No. of Holdings: 36
- Over the 5-year period, the fund has shown exceptional SIP returns of more than 30% which was far ahead of general markets. It has a focused pattern of 36 stocks and is a mix of large-cap pharma giants and specialty drug companies. It is ideal for aggressive investors who want focused exposure to the Indian pharma and healthcare ecosystem.
Top 5 Holdings
| Company | Allocation (%) |
| Sun Pharmaceutical Industries | 11.69% |
| Dr. Reddy’s Laboratories | 8.85% |
| Divi’s Laboratories | 8.13% |
| Cipla | 7.54% |
| Aurobindo Pharma | 5.71% |
2. UTI Healthcare Fund Direct Growth
- 5-Year SIP XIRR: 28.59%
- AUM: ₹1,146 Crores (as on 31-07-2025)
- Expense Ratio: 1.29%
- NAV: ₹332.95 (as on 21-08-2025)
- Minimum Lump Sum: ₹5,000
- Minimum SIP: ₹500
- No. of Holdings: 41
- This fund offers a diversified exposure to the healthcare sector through pharmaceuticals, hospitals and diagnostics. It has a broad base of 41 companies, making it less concentrative even though it is smaller AUM than peers. Investors who want consistent exposure to healthcare innovation and growth will likely find this fund appealing.
Top 5 Holdings
| Company | Allocation (%) |
| Sun Pharmaceutical Industries | 9.84% |
| Cipla | 5.43% |
| Ajanta Pharma Limited | 4.80% |
| Lupin | 4.29% |
| Procter & Gamble Health | 4.13% |
3. SBI Healthcare Opportunities Fund
- 5-Year SIP XIRR: 27.02
- AUM: ₹4,026 Crores (as on 31-07-2025)
- Expense Ratio: 0.91%
- NAV: ₹499.19 (as on 21-08-2025)
- Minimum Lump Sum: ₹5,000
- Minimum SIP: ₹500
- No. of Holdings: 31
- Having a fairly low expense ratio relative to other sector funds, SBI Healthcare Opportunities integrates Indian pharma majors with select global healthcare exposure such as Lonza Group. The reduced concentration in its portfolio of 31 stocks provides increased exposure to the leaders like Sun Pharma and Max Healthcare, and can be of use to those investors interested in taking sector cycle swings in the long term.
Top 5 Holdings
| Company | Allocation (%) |
| Sun Pharmaceutical Industries | 11.44% |
| Divi’s Laboratories | 7.21% |
| Max Healthcare Institute | 6.50% |
| Cipla | 4.63% |
| Lonza Group | 4.09% |
Comparison of Top Pharma & Healthcare Mutual Funds
| Parameter | ICICI Pru Pharma Healthcare & Diagnostics Fund | UTI Healthcare Fund | SBI Healthcare Opportunities Fund |
| 5-Year SIP XIRR | 30.33% | 28.59% | 27.02 |
| AUM (as on 31-07-2025) | ₹6,103 Cr | ₹1,146 Cr | ₹4,026 Cr |
| Expense Ratio | 1.04% | 1.29% | 0.91% |
| NAV (as on 21-08-2025) | ₹43.24 | ₹332.95 | ₹499.19 |
| Minimum Lump Sum Investment | ₹5,000 | ₹5,000 | ₹5,000 |
| Minimum SIP Amount | ₹100 | ₹500 | ₹500 |
| Number of Holdings | 36 | 41 | 31 |
Pharma & Healthcare Mutual Funds is measured against Benchmark Nifty Pharma TRI which has 5 yr SIP XIRR returns of 20.54%.
Also read: 5 Top-Performing Debt Mutual Funds in India with Up to 22% Returns Over Last 5 Years
Pharma & Healthcare ETFs
1. Nippon India Nifty Pharma ETF
- Market Price (21-08-2025): ₹22.77
- 52-Week Low / High: ₹19.47 / ₹24.65
- AUM: ₹942 Crores (as on 21-08-2025)
- Expense Ratio: 0.21%
- Listing Date: 7 July 2021
- Listing Price: ₹14.66
- Number of Stocks: 20
- This ETF is a direct tracker of the Nifty Pharma Index which is used to track 20 of the leading pharma companies in India. It has a high AUM of 942 Cr and is thus a very liquid pharma ETF in India. Following the listing of the fund in July 2021, the fund has made impressive gains since its listing price and this continues to show the confidence of investors in the pharmaceutical growth story.
2. Motilal Oswal BSE Healthcare ETF
- Market Price (21-08-2025): ₹45.23
- 52-Week Low / High: ₹37.93 / ₹47.57
- AUM: ₹32 Crores (as on 21-08-2025)
- Expense Ratio: 0.24%
- Listing Date: 4 August 2022
- Listing Price: ₹23.01
- Number of Stocks: 105
- It follows the S&P BSE Healthcare Total Return Index with a wide-ranging exposure that spans pharma, hospitals, diagnostics, and medical devices. It contains 105 Underlying stocks which is significantly higher than the Nippon ETF but with an AUM of 32 Cr, it is less liquid. In spite of this it has nearly doubled in price since its listing and this underlines the long-term potential of the sector.
Comparison Table: Pharma & Healthcare-Focused ETFs
| Parameter | Nippon India Nifty Pharma ETF | Motilal Oswal BSE Healthcare ETF |
| Market Price | ₹22.77 (as of 21-08-2025) | ₹45.23 (as of 21-08-2025) |
| 52-Week Low / High | ₹19.47 / ₹24.65 | ₹37.93 / ₹47.57 |
| AUM | ₹942 Cr | ₹32 Cr |
| Expense Ratio | 0.21% | 0.24% |
| Listing Date | 7 July 2021 | 4 August 2022 |
| Listing Price | ₹14.66 | ₹23.01 |
| Number of Stocks | 20 | 105 |
Final Thoughts
Although healthcare-oriented ETFs provide similar advantages with way lesser expense ratio, they are usually less popular and, therefore, may have limited liquidity than mutual funds. Mutual funds, in their turn, offer active management, more extensive portfolios, and larger AUMs, which makes them more reliable in the majority of cases. Investors ought to evaluate their time frame of investing, liquidity factors, and risk profile prior to making their investment in healthcare oriented funds.
Written by Prajwal Hegde
