- Kishor Singh, Noida

The objective of Reliance Pharma Fund is to generate capital appreciation by investing in equity & equity related or fixed income securities of Pharma companies.

The fund’s factsheet for June 2010 indicates that of its top five equity holdings,  there is an allocation of about 28 per cent to mid cap pharma companies like Indoco Remedies (8.09%), Aventis Pharma (7.82%) and Wyeth (6.87%). While the top holding is in Sun Pharmaceuticals (8.75%) which is a large cap company.

The fund has outperformed its benchmark index (BSE Healthcare Index) as well as its peers over a period of one year. It also has a satisfactory Sharpe ratio of 0.13 suggesting that the rewards match the risks taken. 

Overall, the outlook for the pharma sector appears satisfactory due to an increased demand for Indian generic drugs. Considering the track record of the fund, together with the encouraging prospects of the pharma sector, the prospects of the Fund appeanr satisfactory.