Bandhan AMC’s Healthcare Fund offers long-term exposure to India’s growing healthcare sector. Here’s what investors should know about opportunities, risks, and portfolio fit before investing.
Bandhan AMC has launched a new Healthcare Fund, opening November 10 and closing November 24, benchmarked to the BSE Healthcare TRI. Managed by Viraj Kulkarni (Vice President – Equities), this thematic fund aims to capture India’s growing healthcare opportunity driven by ageing demographics, rising income, and lifestyle changes.
India’s healthcare spend is just 5.4% of GDP, much lower than the 16.5% in the US. As India’s median age rises from 28 to 38 years over the next two decades, spending is expected to shift toward healthcare, chronic ailments, and preventive care.
Kulkarni sees this as a structural, long-term trend, not a short-term cycle. As the sector becomes more domestic-focused, its share in Indian indices (currently 6–6.5%) could rise meaningfully.
The BSE Healthcare Index currently trades at ~35x trailing P/E, close to its long-term average. Bandhan AMC believes valuations are reasonable given the sector’s healthy cash flows and return ratios.
Historically, the BSE Healthcare Index has outperformed the Nifty 50 by around 2–2.5% annually, and the fund aims to generate 2–4% alpha over the benchmark in the medium term.
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Healthcare stocks tend to command premium multiples — similar to FMCG — because they offer consistent cash flows, healthy return on equity (ROE), and defensive characteristics.
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