Pharma Sector Funds

Ventura Securities Limited

Indian Pharma Sector Outlook

The Indian Pharmaceutical industry plays a vital role in promoting and sustaining development in the field of global medicine.

Indian Pharmaceutical industry is valued at USD12 billion in 2013 and is expected to grow to USD 55 billion by 2020. Globally, India ranks 3rd in terms of volume and 14th in terms of value.

Source: PwC, Mckinsey, TechSci Reseach. Notes: F-Forecast, CAGR- Compound Annual Growth Rate, E- Estimated

The Indian pharmaceuticals market increased at a CAGR of 12.79 per cent in 2015 from USD 6 billion in 2005, and is expected to expand at a CAGR of 15.92 per cent to USD 55 billion by 2020

By 2020, India is likely to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size

India’s cost of production is significantly lower than that of the US and almost half of that of Europe. It gives a competitive edge to India over others.

Continued..

Pharmaceutical sales, as a percentage of total healthcare spending, are expected to increase to 27 per cent by 2016 from 18.9 per cent in 2008.

Growth expected in expenditure

Source: www.ibef.org

Snapshot of Pharma Sector

Pharma Sector Mutual Fund

What are they ? Pharma Sector funds are equity oriented

schemes investing predominantly in pharma stocks.

Who should invest? High risk profile investors who are well-

versed with stock market and understands the sector.

Growth of Pharma sector funds

Pharma sector funds have been key performers in the last one year, which is clearly evident from the rise in AUM of about 68% in just 1 year (Mar 2014- Mar-2015)

Funds Performance

Source: Ace MF, Data as on 05th November 2015

SIP ReturnsSIP returns on monthly investment of Rs. 10,000/-

Source: Ace MF, Data as on 05th November 2015

Sector wise and Company wise exposure

Source: Ace MF, Data as on September, 2015

Taxation Pharma Sector funds are equity-oriented

funds and hence it is treated same as equity for taxation purpose.

Dividend income is tax free.

Long term capital gains (holding period of one year and above) are tax free and Short term capital gains (holding period of less than a year) are tax at 15%.

Time is ticking and every second counts….START INVESTING NOW….ITS NEVER TOO LATE !!

Thank you!Email: mfcustomercare@ventura1.comPhone: +91 22 6754 7046 / 6774 7577