Best Pharma Sector Mutual Funds in June 2025: SBI Healthcare, DSP Healthcare, and More Based on 5-Yr CAGR

Pharma & Health Care sectoral funds are equity-oriented schemes that primarily invest in companies within the healthcare industry. These funds offer investors exposure to the entire healthcare ecosystem, including businesses involved in pharmaceuticals, medical services, healthcare equipment, biotechnology, and health insurance.

In this article, let’s look at the best pharma sector mutual funds based on 5-year CAGR, AUM and 3-year CAGR. 

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

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

Overview of Best Pharma Sector Mutual Funds in June

1. SBI Healthcare Opportunities Fund - Regular Plan - Growth 

This fund falls under the Sectoral/Thematic category and focuses on the healthcare sector. It invests 92.44% of its money in Indian stocks—mainly in large-cap (33.16%), mid-cap (11.37%), and small-cap (7.68%) companies. It has a very small investment (0.08%) in government debt securities.

Key Metrics: 

• NAV: ₹417.9968
• Fund Size: ₹3,670.62 crore
• Expense Ratio: 1.94%

2. DSP Healthcare Fund - Regular Plan - Growth 

This fund is part of the Sectoral/Thematic category and mainly invests in the healthcare sector. It has invested 85.87% in Indian stocks, spread across large-cap (20.75%), mid-cap (12.58%), and small-cap (13.47%) companies. The fund currently has no CRISIL rating or rank available.

Key Metrics: 

• NAV: ₹37.93
• Fund Size: ₹2,912.01 crore
• Expense Ratio: 1.94%

3. Mirae Asset Healthcare Fund - Growth

This fund falls under the Sectoral/Thematic category and mainly invests in the healthcare sector. It has invested 99.83% of its assets in Indian equities, with 40.81% in large-cap stocks. The remaining allocation details are not fully provided here.

Key Metrics: 

• NAV: ₹36.839
• Fund Size: ₹2,682.7 crore
• Expense Ratio: 1.94%

4. Tata India Pharma & Healthcare Fund - Growth 

This fund is a sectoral/thematic scheme that mainly invests in the healthcare and pharmaceutical sector. It has put 93.43% of its assets into Indian stocks, with 35.62% in large-cap, 15.04% in mid-cap, and 17.53% in small-cap companies.

Key Metrics: 

• NAV: ₹29.3465
• Fund Size: ₹1,222.72 crore
• Expense Ratio: 2.15%

5. Nippon India Pharma Fund – Growth 

This is a sectoral/thematic mutual fund from Nippon India Mutual Fund that mainly invests in the pharma and healthcare sector. The fund has 99.71% of its assets in Indian stocks, with 38.29% in large-cap companies, 23.57% in mid-cap, and 11.63% in small-cap firms.

It's meant for experienced investors who understand economic and sector trends and are willing to take focused risks for the chance of higher returns. 

Key Metrics: 

• NAV: ₹504.3916
• Fund Size: ₹8,259.6 Cr
• Expense Ratio: 1.8% 

Best Pharma Sector Mutual Funds in June: AUM Basis

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

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

Note: The best pharma sector mutual funds listed above are sorted as per the 3-year CAGR as of June 5, 2025.

Read More: Best Defence Sector Mutual Funds in June 2025: HDFC Defence Fund & More Based on AUM. 

Who Should Consider Investing in Pharmaceutical Mutual Funds?

Pharmaceutical mutual funds are a type of thematic equity fund that focuses on investing in leading companies within the pharma and healthcare sectors. Due to their concentrated exposure, these funds are best suited for investors with a high-risk appetite who are aiming for potentially higher returns. While they tend to outperform during favourable market cycles, they can also experience steeper declines during sector downturns.

Conclusion

Pharmaceutical mutual funds offer focused exposure to India’s rapidly evolving healthcare sector. Leading funds like SBI Healthcare Opportunities Fund and DSP Healthcare Fund have delivered over 25% 5-year CAGR. However, sectoral volatility means these funds are best suited for those with high risk tolerance and a strategic investment plan. Always align your fund choices with your financial goals, portfolio mix, and market understanding for optimal returns.

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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.