Due to the Kovid-19 epidemic, the Pharma sector Outlook is seeing better returns, especially in companies making vaccines. Outlook of this sector is better. However, experts have different opinions about this.
new Delhi. If a sector has benefited due to Coronavirus Pandemic, then it is the Pharma sector. There was no good growth in this sector during the last three years, but now there has been a tremendous comeback. Talking about the highest returns in the last one year, the pharma sector is second in this list. In the case of giving returns, gold funds are at the first number. Gold has also benefited from the current crisis.
Why is there a boom in the pharma sector?
In the last three months, there has been a tremendous jump in the stocks of drug companies. There are many reasons for this. Regulatory regulations in the US market regarding drugs have been made easier. This sector has also got cheap valuations.
Financial planners and mutual fund managers believe that Outlook (Pharma Sector Outlook) and more schemes are better for this sector. Because at this time there is a high demand for medicines and vaccines in the whole world. Experts say that companies which work in the field of vaccine will get the most benefit from the current crisis. Overall, the outlook for the pharma sector is quite good.
Talking about Return in Pharma sector in the last one year, it has been close to 27.55 percent. At the same time, it has been 8.05 per cent in the last three months and 3.07 per cent in a month. Similarly, the Healthcare Index on S&P BSE shows a return of 15.84 percent. It is 6.33 percent in the last three months and 3.70 percent in a month. Mutual fund advisors say that there is a possibility of better returns in these sectors as well.
Should Investors Invest in the Pharma Sector?
Now the biggest question for investors is whether they should invest. Advisors give many opinions on this. Some say that investors have a chance to take advantage of the current boom. One can invest in this sector. But, some say that investors who are ready to take the risk, they should invest in it. If the investment has surplus amount then it will be easy for them to invest. Because investing can be challenging by reducing existing liquidity.
Help in diversifying the portfolio
Generally, most mutual fund advisers do not recommend sector schemes for retail investors. If an investor expects returns in the next 10 years, then they should invest only 5 to 10 percent of their portfolio in a particular sector like pharma. This will enable their portfolio to be diversified.