HDFC Pharma and Healthcare Fund
Direct · GrowthAI Summary
HDFC Pharma and Healthcare Fund has delivered strong outperformance across all time horizons, with a 1Y XIRR of 24.69% versus the category average of 14.1%. Lump-sum performance is equally impressive, with the fund's 1Y CAGR of 25.46% far exceeding the NIFTY 50's -2.9%, and 5Y CAGR of 17.5% versus 4.33% for the benchmark. Alpha is positive across every measured period, though it naturally compresses over longer windows, from 24.66% at 1Y to 2.06% at 15Y.
The fund exhibits defensive characteristics with a low beta of 0.60 against the NIFTY 50 and a downside capture of just 44.47%, meaning it loses significantly less than the market in down phases. Risk-adjusted returns are strong, evidenced by a 1Y Calmar ratio of 1.6449 and only one drawdown event exceeding 10%, with a modest maximum drawdown of -0.15% recovered in 126 days. Upside capture of 76.94% indicates the fund gives up some participation in rallies, but its substantial alpha more than compensates.
The portfolio is concentrated in pharmaceuticals, with Divis Laboratories (9.54%) and Sun Pharmaceutical (8.94%) as the top holdings, and the pharma and biotechnology sector accounting for 68.6% of NAV. Healthcare services adds 24.1%, including Max Healthcare (4.06%) and Aster DM Quality Care (3.84%), providing some diversification within the healthcare theme. With 37 total holdings, the fund is reasonably diversified at the stock level, but the sector-level concentration is inherent to its thematic mandate.
The fund's 1Y XIRR of 24.69% substantially exceeds the category average of 14.1%, placing it among the stronger performers in the sectoral/thematic healthcare space. Calendar year returns show some volatility in consistency, ranging from 51.79% in 2024 to just 2.03% in 2025, which is typical of sector funds. The persistent positive alpha across 1Y to 15Y horizons suggests durable stock selection skill rather than a single-period fluke.
This fund is suitable for investors with high risk tolerance who understand sector concentration risk and want tactical or satellite exposure to the healthcare theme, ideally as a complement to a diversified core portfolio. A time horizon of at least 5-7 years is advisable, given that sector cycles can produce flat years like 2025's 2.03% return. Investors should be comfortable with periods of significant underperformance relative to diversified equity funds when the pharma sector is out of favor.
- Exceptional outperformance with 1Y XIRR of 24.69% versus category average of 14.1%, and positive alpha across all periods from 1Y to 15Y
- Strong defensive profile with beta of 0.60 and downside capture of only 44.47% against the NIFTY 50
- Healthy risk-adjusted returns with a 1Y Calmar ratio of 1.6449 and only one drawdown event exceeding 10%
- Heavy sector concentration with 68.6% in pharmaceuticals and biotechnology exposes investors to sector-specific regulatory, pricing, and export-related risks
- Return consistency is uneven, with calendar year returns swinging from 51.79% in 2024 to just 2.03% in 2025, reflecting the cyclical nature of sector funds
Generated on 10-09-2026, 3:00 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 | ₹12.86 L | 24.7% | -2.6% | 79.8% |
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 | 24.7% | 14.4% | 14.1% | +10.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 24.5% | 21.5% | 1.7% | 67.3% | 1.11 | 25.35 | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +24.66 | 0.61 | 76.9% | 44.5% | 25.5% | -2.9% |
| 3 Years | +23.85 | 0.60 | 77.3% | 45.4% | 30.8% | 7.3% |
| 5 Years | +12.30 | 0.60 | 77.3% | 45.4% | 17.5% | 4.3% |
| 7 Years | +7.77 | 0.60 | 77.3% | 45.4% | 12.2% | 3.1% |
| 10 Years | +4.51 | 0.60 | 77.3% | 45.4% | 8.4% | 2.1% |
| 12 Years | +3.28 | 0.60 | 77.3% | 45.4% | 7.0% | 1.8% |
| 15 Years | +2.06 | 0.60 | 77.3% | 45.4% | 5.5% | 1.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Divis Laboratories Ltd. | 9.54% |
| 2 | Sun Pharmaceutical Industries Ltd. | 8.94% |
| 3 | Torrent Pharmaceuticals Ltd. | 4.08% |
| 4 | Max Healthcare Institute Limited | 4.06% |
| 5 | Lupin Ltd. | 4.04% |
| 6 | Cipla Ltd. | 3.94% |
| 7 | Aster DM Quality Care Limited | 3.84% |
| 8 | Neuland Laboratories Limited | 3.70% |
| 9 | Acutaas Chemicals Limited | 3.24% |
| 10 | Ipca Laboratories Ltd. | 3.23% |