As per the press release, Nifty Healthcare Index comprises a maximum of 20 tradable, exchange-listed companies and has a well-diversified sub-sector allocation.
In addition to health care companies, the index includes companies in sectors such as pharma, hospitals, medical equipment and supplies, laboratories and diagnostics as well as medical insurance. Sub-sectors also include companies engaged in formulations, APIs, CRAM and other healthcare services.
The index is formed on a free-float market capitalization method and is reconstituted semi-annually. The index has outperformed the broader market indices in recent years.
“Healthcare has become one of the key sectors in India in terms of revenue, exports and job creation. This growth is reflected in the market performance of healthcare companies. The Nifty Healthcare index has risen more than 9 times from its base date as compared to the Nifty, which has gained 8 times in the same period. It has generated double digit returns both in short-term (3 years) and long-term (10 years).
He further added, “Since it is a passive fund, it reduces the investment cost and the need for stock selection, as well as offers the benefits of share-like trading. Healthcare ETFs are part of the sector’s growth journey for investors. There would be an easier way to be.
The fund house believes that the healthcare sector is poised for a strong growth trajectory. The minimum application amount for this fund is Rs 500 and thereafter in multiples of Rs 100, during the NFO which is open from October 8, 2021 to October 20, 2021.