Best Pharma Sector Funds In August 2025: ICICI Pru, SBI, DSP - Based on AUM

Pharma and healthcare sector funds are equity mutual funds that invest in companies from various segments of the healthcare industry. These include pharmaceuticals, biotechnology, healthcare services, medical device manufacturers, and health insurance providers.

This article highlights the best-performing pharma mutual funds as of August 2025, ranked based on their 5-year CAGR, Assets Under Management (AUM), and 3-year CAGR.

Best Pharma Sector Mutual Funds in August 2025: AUM Basis

Note: The best pharma sector mutual funds in August listed above are sorted as per the AUM as of July 25, 2025. 

Best Pharma Sector Mutual Funds in August 2025

1. Nippon India Pharma Fund

This sectoral/thematic fund invests 99.43% in Indian equities, with 34.67% in large-cap stocks, 23.77% in mid-cap stocks, and 12.11% in small-cap stocks. 

Key Metrics: 

• 1-Month Returns: 3.72%
• 1-Year Returns: 12.83%
• Compound Annual Growth Rate (CAGR): 18.52%

2. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund – Growth

This fund invests heavily in Indian equities, with 96.99% of its portfolio allocated to the domestic market. The breakdown includes 39.86% in large-cap, 20.24% in mid-cap, and 10.96% in small-cap stocks.

Key Metrics: 

• 1-Month Returns: 4.64%
• 1-Year Returns: 18.88%
• CAGR: 23.44%
   

3. SBI Healthcare Opportunities Fund – Regular Plan – Growth

Classified under Sectoral/Thematic funds, this scheme focuses on healthcare-related investments. It holds 92.44% in Indian stocks—33.16% large-cap, 11.37% mid-cap, and 7.68% small-cap. Additionally, 0.08% is invested in government bonds.

Key Metrics: 

• 1-Month Returns: 4.55%
• 1-Year Returns: 19.68%
• Compound Annual Growth Rate (CAGR): 18.44%

4. DSP Healthcare Fund – Regular Plan – Growth

This fund targets healthcare stocks, with 85.87% of its portfolio invested in Indian equities, comprising 20.75% in large-cap, 12.58% in mid-cap, and 13.47% in small-cap stocks. It currently holds no CRISIL rating.

Key Metrics: 

• 1-Month Returns: 6.23%
• 1-Year Returns: 13.39%
• Compound Annual Growth Rate (CAGR): 25.28%

5. Mirae Asset Healthcare Fund – Growth

Primarily focused on healthcare, this fund has 99.83% exposure to Indian stocks. A significant 40.81% is invested in large-cap companies, though other segment-wise allocations are not fully disclosed.

Key Metrics: 

• 1-Month Returns: 5.46%
• 1-Year Returns: 14.91%
• Compound Annual Growth Rate (CAGR): 23.41%

Best Pharma Sector Mutual Funds in August 2025: 5-Year CAGR Basis

Note: The best pharma sector mutual funds in August listed above are sorted on a 5-Yr CAGR basis as of July 25, 2025. 

Best Pharma Sector Mutual Funds in August 2025: 3-Year CAGR Basis

Note: The best pharma sector mutual funds in August listed above are sorted on a 3-Yr CAGR basis as of July 25, 2025. 

Who Should Consider Investing in Pharma Mutual Funds?

Pharma mutual funds are thematic equity schemes focused on companies in the pharmaceutical and healthcare sectors. These funds are best suited for investors with a strong risk appetite who are looking for potentially high returns through concentrated exposure to a single sector. Although they can deliver strong performance when the healthcare sector is booming, they are also more vulnerable to steep losses during sectoral slowdowns.

Also Read:Best Semiconductor Stocks in August 2025! 

Conclusion

Pharmaceutical mutual funds offer a focused way to tap into the potential of India’s expanding healthcare industry. Top-performing funds like SBI Healthcare Opportunities and DSP Healthcare Fund have delivered over 25% CAGR over the past five years. However, given the sector-specific risks, these funds are more appropriate for seasoned investors who are comfortable with market volatility and have a long-term investment horizon.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.