Best Pharma Sector Mutual Funds in July 2025: ICICI, SBI, DSP - Based on 5-Year CAGR

Pharma and healthcare sector funds are equity-based mutual funds that focus on companies operating across the healthcare industry. These funds provide investors with access to the broader healthcare space, including pharmaceuticals, medical services, biotech firms, healthcare equipment manufacturers, and health insurance providers.

In this article, we explore the top-performing pharma mutual funds in July 2025, ranked by their 5-year CAGR, Assets Under Management (AUM), and 3-year CAGR.

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

Note: The best pharma sector mutual funds listed above are sorted as per the 5-year CAGR as of June 28, 2025. 

Overview of Best Pharma Sector Mutual Funds in July 2025

1. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund - Growth 

This fund invests 96.99% of its assets in Indian stocks, with allocations of 39.86% in large-cap companies, 20.24% in mid-cap, and 10.96% in small-cap stocks.

• Expense Ratio: 1.06%
• PE Ratio: 39.54
• Sharpe Ratio: 1.20

2. SBI Healthcare Opportunities Fund – Regular Plan – Growth

This scheme belongs to the Sectoral/Thematic category and targets investments in the healthcare space. About 92.44% of the portfolio is allocated to Indian equities, with 33.16% in large-cap, 11.37% in mid-cap, and 7.68% in small-cap stocks. A minimal 0.08% is invested in government debt instruments.

Key Metrics: 

• Expense Ratio: 0.85%
• PE Ratio: 36.81
• Sharpe Ratio: 1.00

3. DSP Healthcare Fund – Regular Plan – Growth

Falling under Sectoral/Thematic funds, this scheme primarily invests in healthcare-related stocks. It has allocated 85.87% of its assets to Indian equities, spread over large-cap (20.75%), mid-cap (12.58%), and small-cap (13.47%) companies. Currently, the fund doesn’t have a CRISIL rating or rank.

Key Metrics:

• Expense Ratio: 0.62%
• PE Ratio: 55.64
• Sharpe Ratio: 0.96

4. Mirae Asset Healthcare Fund – Growth

This Sectoral/Thematic fund focuses mainly on healthcare investments. A substantial 99.83% of the corpus is invested in Indian equities, with 40.81% allocated to large-cap stocks. The exact allocation of the remaining portion isn’t fully specified.

Key Metrics:

• CAGR: 22.86%
• Expense Ratio: 0.50%
• AUM: ₹2,690.6 crore

5. Tata India Pharma & Healthcare Fund – Growth

This Sectoral/Thematic fund focuses on the healthcare and pharmaceutical sectors. It has allocated 93.43% of its assets to Indian equities, with 35.62% invested in large-cap stocks, 15.04% in mid-cap, and 17.53% in small-cap companies. 

Key Metrics:

• CAGR: 14.00%
• Expense Ratio: 0.63%
• AUM: ₹1,231.7 crore

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

Note: The best pharma sector mutual funds listed above are sorted as per the 3-year CAGR as of June 28, 2025. 

Best Pharma Sector Mutual Funds in July 2025: AUM Basis

Note: The best pharma sector mutual funds listed above are sorted as per the AUM as of June 28, 2025. 

Read More:Top 5 Gold ETFs in July 2025 With5-Year CAGR of 14% and Above.

Who Should Invest in Pharmaceutical Mutual Funds?

Pharmaceutical mutual funds are thematic equity schemes that invest primarily in top companies within the pharma and healthcare space. Given their focused sector exposure, these funds are ideal for investors with a higher risk appetite who are seeking strong returns. While they can outperform in favorable market conditions, they may also witness sharper declines during downturns in the healthcare sector.

Conclusion

Pharma mutual funds offer targeted investment opportunities in India’s growing healthcare industry. Funds like SBI Healthcare Opportunities and DSP Healthcare Fund have recorded over 25% CAGR in the last five years. However, due to inherent sectoral risks, such funds are better suited for informed investors with a high-risk tolerance and long-term strategy. 

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.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.