What’s the one sector that has remained unfazed even after the COVID crisis?
It’s the healthcare sector. As the pandemic continues affecting millions of people all over the world, the healthcare workers stand at the forefront fighting. Healthcare sector is right at the centre of the crisis and millions of doctors, nurses, medical professionals, pharmaceutical firms, medical store workers, are working tirelessly to make people sail through these terrible times.
All industries linked to all medical processes are doing well in the current times, when all other industries like, automobiles, electronic gadgets, and hospitality etc. are undergoing a severe cycle of unemployment and making losses. Here’s the top 4 reasons why healthcare funds are a big catch, for investing in the next 6-12 months:
1. India will become a major Healthcare Export Hub – Healthcare Funds
The revenue earned by Indian pharma companies through export has only been rising over the years. In 2010, the revenue earned by Indian companies through export of pharmaceuticals to the USA was USD 1 billion, which hiked to USD 6.7 billion in 2018 and is expected to grow up to USD 9 billion by 2021. As per recent estimates, India accounts for about 10% of world’s pharmaceutical production by volume and 1.5% by value. Our healthcare industry is the world’s largest supplier of generic drugs and controls around 18% of the global market. Along with this, Indian pharma has always been in high demand in developed and developing nations owing to the cheap and affordable prices. Even during the COVID-19 crisis, India has been one of the primary suppliers of hydroxychloroquine to other nations.
2. Investment in Healthcare Sector will Rise – Healthcare Funds
It has been speculated that the post COVID era will see a spike in the budget of the government for the healthcare and pharmaceutical sector. As per Vrijesh Kasera, the fund manager of Mirae Asset Healthcare Fund, “The healthcare and pharma sector broadly was in revival mode even before COVID-19, both in the US and domestic Indian market. After this pandemic there could be significantly higher spending both by the government and private sector on healthcare. There are supply side challenges but the overall outlook is positive.”
3. Drop in Healthcare Index – Healthcare Funds
It is a great time to invest in the healthcare and pharmaceutical sector because the healthcare index is 22% below its peak level in 2015. This means that if you buy pharma funds right now, you will get them at a cheap price. There is a high chance that their prices will rise to match the peak in the coming few months, which makes it a good option to earn good returns from.
4. Relatively High Demand Factor for Healthcare Industries – Healthcare Funds
During COVID, while all other industries have suffered huge setbacks, especially with regard to the fall in the consumer demand, the healthcare sector saw no fall. Rather, the demand has only risen in times of the global health crisis. This lack of disruption can be linked to the pharma sector being a part of the essential services.
5. Rise of Medical Tourism in India – Healthcare funds
Since 2014, the number of people coming to India for medical treatment has grown every year at the rate of about 55%. According to Ministry of Tourism, the medical tourism sector was valued at around USD 3 billion in 2015 and at USD 9 billion in 2020. Indian government has promoted India as a better medical tourist destination over the years, by issuing fast-track medical visas and rapid airport clearances for medical tourists. It can’t be denied that currently most of the players in the medical tourism space are in the private sector but it is clear that this one area that can develop much more in the years to come for the Indian government.
Hence, you have a great opportunity to invest in the best pharma funds and earn great returns over the next 6-12 months. Invest in the Best Healthcare funds with Sqrrl now.