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Nippon India Pharma Fund Direct-Growth

Equity Sectoral-Pharma

PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth

1 Yr return

5.42%

3 Yrs CAGR returns

6.97%

5 Yrs CAGR returns

4.99%

NAV as on 27 Dec

₹ 167.99 by 0.96 ( 1.27%)

Expense ratio

1.36

Exit load

1%

Fund Size (Cr)

₹ 2492.35


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Performance Graph*
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If ₹5000 invested for 1

Estimated returns*

₹ 0

with % annual returns

Direct Funds
Estimated amount
₹ 10,27,000
Regular Funds
Estimated amount
₹ 9,91,000

* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More

The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.

investment objective

The scheme seeks to generate consistent returns by investing in equity / equity related or fixed income securities of pharma and other associated companies.

Tax Implications

Returns are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay LTCG tax of 10% on returns of Rs 1 lakh+ in a financial year.

riskometer
Top Holdings
Top 10 Sectors %
Health Care 99.38
Others 0.62
Top 10 Sectors %
Drugs & Pharma 11.09
Drugs & Pharma 9.59
Drugs & Pharma 9.54
Drugs & Pharma 7.56
Drugs & Pharma 7.48
Drugs & Pharma 7.15
Drugs & Pharma 6.14
Drugs & Pharma 6.07
Health Services 5.7
Drugs & Pharma 5.49
Fund house details
Fund House Reliance Mutual Fund
Fund Manager Sailesh Raj Bhan
Fund Setup Date 01 Jan 2013
Address Reliance Centre, 7th Floor, South Wing Off Western Express Highway Santacruz (East)
Contact (022) 33031000 / 1800 300 11111
Email ID customer_care@reliancemutual.com
More About This Fund

About Nippon India Pharma Fund

The erstwhile Reliance Pharma Fund was a part of Anil Dhirubai Ambani’s group, Reliance Mutual Fund. After Japan’s Nippon Life Insurance completed the acquisition of 75% stake in Reliance Nippon Life Asset Management Company, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund as Reliance Capital takes an exit from the business.

Being a sectoral fund, the investment objective of Nippon India Pharma fund is to generate consistent returns by investing in equity/equity related or fixed income securities of Pharma and other associated companies. Providing an all-round diversified portfolio, the fund has launched various schemes with the idea of providing investors with the ability to invest in diversified securities.

Mr. Shailesh Raj Bhan is currently appointed as the Fund Manager of Nippon India Pharma Fund. He has been working with Reliance Nippon AMC since over 10 years now. Mr. Shailesh Bhan brings along expertise, along with historical performance in managing diversified equity schemes. For over 9 years, he has been managing two specialized sector funds with Reliance Nippon AMC, namely, Nippon Pharma Sector Fund and Reliance Media and Entertainment Fund.

Who Should Invest?

  • All the equity funds are subject to market risks. Being a sector oriented fund, the risk involved in this fund is quite high. Hence, only the investors who are willing to take a high level of risk may consider investing in this fund.
  • Alternatively, if you are one among the risk-averse investors, you must consider investing in large-cap funds like ICICI Prudential Bluechip Fund, SBI Bluechip Fund or Axis Bluechip Fund
  • Since the fund offers a diversified portfolio to its investors, it is considered suitable only for investors who have complete knowledge of macro trends in the market
  • The returns generated by this fund may vary if there is volatility in the pharma sector. However, the fund generates high returns during bearish markets. Therefore, this is a suitable fund for investors who prefer to make bets for higher returns
  • The fund invests in various pharma companies of varied sizes, considering their growth projections. Hence, the investors who are ready to accept moderate to high levels of losses in their investments may consider this fund

Also Read: What is the best investment in 2019?

Taxation- How will they be Taxed?

The fund is eligible for a short term capital gains tax payment of 15% is redeemed within one year from the date of allotment. On the other hand, long term capital gains tax is to be paid at 10% if units worth more than Rs. 1 lakh are redeemed after one year. Additionally, a dividend distribution of 10% is also levied on dividends.

For an example –

If an investor has made a capital gain of ₹70000 on investment in an equity fund, Short Term Capital Gains Tax of 15% would be levied if s/he withdraws the amount within one year of investment. The payable tax would be ₹10,500.

Also, if an investor has made a capital gain of ₹3 lakh on investment in an equity fund, and withdraws the amount after 1 year of investment, Long Term Capital Gains Tax of 10% would be levied on ₹2 lakh. ₹1Lakh is exempted from taxation. The payable tax would be ₹20,000.

How to Invest in Nippon India Pharma Fund?

  • Sign Up/Sign in to Paisabazaar.com and go to ‘Direct Mutual Funds’
  • Click on the section of ‘Equity Sectoral Funds’
  • Type and search directly by the name of Nippon India Pharma Fund Direct Growth. Once it opens up, look at the details. You can also compare similar funds as well as use SIP Calculator or Lumpsum Calculator to estimate the future value of your investment
  • Click on ‘Invest Now’, select either Lump sum or SIP

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FAQs

Q. What are sectoral funds? Is Nippon India Pharma Fund a sectoral fund?
A. Sectoral funds are funds that invest in a specific business that operates in a particular industry or sector of the economy. Yes, Nippon India Pharma Fund is a sectoral fund; it invests only in Pharma and related companies.

Q. Does Nippon India Pharma Fund come under Section 80C or offer tax benefits?
No, this fund is not eligible for tax benefits under Section 80C of the Income Tax Act.

Q. What is Exit Load? Does this scheme have an Exit Load?
A.
Exit Load is the fee charged from an investor when he decides to quit the scheme and redeem his money. Generally, there is some penalty charged only if funds are redeemed in less than 365 days, otherwise there are usually no charges. There is an Exit Load of 1% on the fund if the amount is redeemed within 365 days from the date of allotment.

Q. What is Expense Ratio? Does Nippon India Pharma Fund have an Expense Ratio?
A.
It is the fee charged from the investor for managing his fund money and allocating it to the stocks that can help him earn returns. There is an Expense Ratio of 1.36% on the fund.

Q. What is the lock-in period of Nippon India Pharma Fund?
No, the fund does not have a lock-in period. However, if you redeem your investment within one year you will have to pay an exit load.