look news india
MUMBAI: Equity inflows into mutual funds rose 14 per cent in December, but returns to investors have varied and funds have been able to deliver positive returns to investors only in the niche category, pharma-healthcare. Investors in the remaining equity fund categories have got negative returns.
The performance of pharma and healthcare sector-based funds has been exceptional in the last one month, as this category alone has delivered positive returns of around 1.34 per cent in the month. The main reason for this is that the results of the third quarter in the pharma sector are expected to be positive. This includes the price factor. Apart from this, some other factors have also contributed to this performance.
In the last one month, pharma funds have given an average return of 1.34 per cent compared to negative returns in other sectors. To this end, several growth drivers, such as support from the government in the form of PLI incentives, among other factors, enabled domestic production of imported drugs. All these factors together have contributed to last month’s returns.
Most of the companies in this pharma sector have given a positive outlook on the results of the third quarter. Most of the companies in the sector have given positive outlook for third quarter earnings with rising demand, new product launches, growth in gross margins, expansion in US business portfolio. Keeping these factors in mind, stocks in the sector witnessed a rise ahead of the announcement of Q3FY25 earnings.
Meanwhile, apart from positive returns in only one equity category, healthcare sector funds, other funds have underperformed. On the other hand, promoter holdings of companies in many other sectors have declined during this period and promoters have sold a large number of shares.
On the other hand, investment by retail investors in mutual funds has been continuously positive in December, discussions have started in the market that mutual funds are giving an exit opportunity to promoters and operators by investing the capital of retail investors in shares. price.