HDFC Pharma and Healthcare Fund
Direct · GrowthAI Summary
HDFC Pharma and Healthcare Fund has delivered strong returns, with a 1Y XIRR of 23.88% and 3Y XIRR of 24.11%, well ahead of the category average SIP XIRR of 10.6% and 16.2% respectively. Against the NIFTY 50, the fund shows substantial alpha across horizons, including 23.27% over 1Y and 22.83% over 3Y, with the fund's 3Y CAGR of 29.31% versus the benchmark's 6.46%. Calendar year returns have been uneven, ranging from 51.79% in 2024 to just 2.03% in 2025, reflecting sector cyclicality.
The fund exhibits low volatility relative to the benchmark, with a beta of roughly 0.60 and downside capture of only 42.73% over 1Y and 46.9% over 3Y, meaning it has fallen far less than the market in down periods. Only one drawdown event exceeding 10% occurred, with a maximum drawdown of about -14.91% that took 126 days to recover. Strong Calmar ratios of 1.65 (1Y) and 1.93 (3Y) indicate solid risk-adjusted returns.
The portfolio is concentrated in 35 holdings, led by Divis Laboratories (9.39%) and Sun Pharmaceutical (8.28%), with the top two positions comprising nearly 18% of NAV. Pharmaceuticals & Biotechnology dominates at 68.1% of the portfolio, with Healthcare Services adding 22.1%, leaving minimal exposure to other healthcare sub-sectors. This deep sector concentration is inherent to the fund's thematic mandate and magnifies both sector-specific upside and downside.
The fund's 3Y XIRR of 24.11% exceeds the category average of 16.2% by nearly 8 percentage points, placing it among the stronger performers in the sectoral/thematic category. Its consistent positive alpha over 1Y, 3Y, and 5Y horizons (23.27%, 22.83%, and 11.68% respectively) suggests sustained stock selection skill rather than a single-period fluke. However, alpha has narrowed over longer horizons, declining to 4.25% over 10Y and 1.90% over 15Y.
This fund is suitable for investors with high risk tolerance who already hold a diversified core portfolio and want a tactical sector allocation to pharma and healthcare. A horizon of at least 5-7 years is advisable, given the sector's cyclicality evident in calendar year swings from 2.03% to 51.79%. Investors should limit this to a satellite allocation, typically 5-10% of their equity portfolio, due to its concentrated thematic exposure.
- Strong SIP XIRR of 24.11% over 3Y, nearly 8 percentage points above the category average of 16.2%
- Low beta of ~0.60 and downside capture below 50% across horizons, offering meaningful downside protection versus the NIFTY 50
- Consistent positive alpha across 1Y, 3Y, and 5Y horizons, indicating durable stock selection performance
- Heavy concentration in Pharmaceuticals & Biotechnology (68.1%) makes the fund highly vulnerable to sector-specific headwinds such as USFDA regulatory actions or pricing pressure
- Alpha has compressed over longer horizons, from 11.68% over 5Y to just 1.90% over 15Y, suggesting weaker relative performance in earlier periods
Generated on 30-10-2026, 2:14 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.92 L | 25.7% | -2.6% | 79.8% |
| 3 Years | ₹36.00 L | ₹50.63 L | 24.6% | 18.6% | 28.3% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 25.7% | 14.3% | 10.6% | +11.4% |
| 3 Years | 24.6% | 11.0% | 16.2% | +13.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 24.6% | 22.7% | 1.7% | 67.3% | 1.16 | 26.74 | 100% | — | — |
| 3 Years | 29.1% | 29.0% | 27.8% | 30.5% | 23.98 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +26.83 | 0.59 | 73.9% | 38.7% | 23.1% | -10.9% |
| 3 Years | +24.09 | 0.60 | 76.5% | 45.3% | 30.5% | 6.4% |
| 5 Years | +12.51 | 0.60 | 76.0% | 45.5% | 17.1% | 3.4% |
| 7 Years | +7.92 | 0.60 | 76.0% | 45.5% | 12.0% | 2.4% |
| 10 Years | +4.62 | 0.60 | 76.0% | 45.5% | 8.2% | 1.7% |
| 12 Years | +3.37 | 0.60 | 76.0% | 45.5% | 6.8% | 1.4% |
| 15 Years | +2.13 | 0.60 | 76.0% | 45.5% | 5.4% | 1.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Divis Laboratories Ltd. | 9.39% |
| 2 | Sun Pharmaceutical Industries Ltd. | 8.28% |
| 3 | Alkem Laboratories Ltd. | 4.64% |
| 4 | Cipla Ltd. | 4.15% |
| 5 | Apollo Hospitals Enterprise Ltd. | 3.69% |
| 6 | Torrent Pharmaceuticals Ltd. | 3.65% |
| 7 | Max Healthcare Institute Limited | 3.61% |
| 8 | Aster DM Quality Care Limited | 3.56% |
| 9 | Lupin Ltd. | 3.55% |
| 10 | Neuland Laboratories Limited | 3.24% |