PGIM India Healthcare Fund

The PGIM India Healthcare Fund has delivered a 1-year XIRR of 13.91%, which is slightly below the category average of 14.1% but significantly outperforms the NIFTY 50 benchmark, which returned -2.9% over the same period. Over longer horizons, the fund's CAGR of 8.05% (3Y) and 4.76% (5Y) also exceed the benchmark's negative returns, though the fund's absolute returns have been modest. The fund's 1-year rolling return mean of 10.34% indicates moderate performance consistency.

The fund exhibits low volatility relative to the benchmark, with a beta of 0.56 over 1 year, and has a maximum drawdown of only -0.14%, which is exceptionally shallow. The Calmar ratio of 0.72 over 1 year suggests reasonable risk-adjusted returns, but the average drawdown of -0.035% and only one drawdown event greater than 10% indicate a relatively stable profile. However, the fund's low downside capture (43.24% over 1Y) shows it loses less than the market in downturns, but its upside capture (74.05%) is also lower, limiting participation in rallies.

As a sectoral/thematic fund focused on healthcare, the portfolio is concentrated in pharmaceutical, healthcare services, and related companies, which inherently limits diversification across sectors. The fund's top holdings are not specified, but sector concentration is high, making it susceptible to sector-specific regulatory and competitive risks. Investors should be aware that this thematic focus can lead to higher volatility in returns compared to diversified equity funds.

The fund's 1-year XIRR of 13.91% is slightly below the category average of 14.1%, indicating it is in line with peers but not a top performer. Over longer periods, the fund's CAGR (e.g., 8.05% over 3Y) is significantly lower than the category average SIP XIRR of 16.82%, suggesting underperformance relative to peers on a like-for-like basis. The fund has shown positive calendar year returns in 2026 (25.4%) but negative in 2025 (-1.47%), indicating inconsistency.

This fund is suitable for investors with a high risk tolerance and a long-term investment horizon (at least 5-7 years) who are specifically bullish on the healthcare sector. It is not appropriate for conservative investors or those seeking broad market exposure, given its sector concentration and potential for underperformance relative to diversified funds. Investors should be prepared for cyclical swings in healthcare stocks and consider this as a satellite allocation rather than a core holding.

• Significant outperformance versus the NIFTY 50 benchmark across 1Y, 3Y, 5Y, and 7Y periods, with positive alpha in most periods.
• Low downside capture (43.24% over 1Y) indicates the fund protects capital better than the benchmark during market declines.
• Very shallow maximum drawdown (-0.14%) and short drawdown duration (52 days) suggest strong resilience in adverse markets.

• Underperformance versus category average SIP XIRR over 3Y, 5Y, 7Y, and 10Y periods, with the fund's CAGR lagging peers by a wide margin.
• High sector concentration in healthcare exposes the fund to regulatory and policy risks, and the low upside capture (74.05%) limits participation in strong market rallies.