Nippon AMC - NETF Pharma

About Nippon India Nifty Pharma ETF

• The Nippon India Nifty Pharma ETF is an open-ended mutual fund offered by Nippon India Mutual Fund.
• The scheme primarily invests in pharma stocks.
• Nippon India Nifty Pharma ETF was launched on July 2, 2021.
• The ETF has assets under management (AUM) at ₹706.41 crore as of July 31.
• Himanshu Mange has been the fund manager of Nippon India Nifty Pharma ETF since December 2021.
• The ETF units are listed on both NSE and BSE.
• Retail investors can purchase units through a demat account with a registered broker.

Investment Objective & Benchmark

• The ETF is benchmarked against the Nifty Pharma Index Total Return Index, which tracks the top-performing companies in areas like sustainability and growth.
• This fund's objective is to generate returns by investing in the same stocks as the Nifty Pharma Index, closely matching its performance, though some differences may occur.
• The risk profile level of Nippon India Nifty Pharma ETF is very high.
• The Nifty Pharma Index typically includes large-cap pharmaceutical companies which are considered more stable than smaller companies.
• This ETF is suitable for investors looking to gain exposure to the pharmaceutical sector without having to pick individual stocks.
• It can be a good option for those who believe in the growth potential of the Indian pharma industry.
• The stocks in this ETF are weighted according to their proportion in the Nifty Pharma Index, based on free-float market capitalisation, which considers only the shares available for trading.
• Companies are selected based on their market-cap ratings, focusing on those with the highest rankings in the pharma sectors. The portfolio includes a mix of large-cap and mid-cap companies that are leaders in their industries and are expected to benefit from India's growth.

Asset Allocation & Portfolio Composition

• The ETF holds 99.68% of its fund in equity and 0.32% in cash.
• The scheme invests in companies across market capitalisations–15.25% in giant, 33.95% in large-cap, 41.29% in mid-cap and 9.50% in small-cap.
• The ETF's sector allocation is predominantly focused on healthcare, comprising 99.68% of the fund.
• Top 10 Holdings of stocks are around 80.73% of this ETF’s asset allocation.

The top 10 company holdings in this ETF include:

• Sun Pharmaceutical Industries Limited - 24.62%
• Dr Reddy's Laboratories Limited - 10.90%
• Cipla Limited - 10.75%
• Divi's Laboratories Limited - 8.32%
• Lupin Limited - 6.13%
• Aurobindo Pharma Limited - 5.35%
• Zydus Lifesciences Limited - 4.16%
• Torrent Pharmaceuticals Limited - 3.85%
• Alkem Laboratories Limited - 3.54%
• Glenmark Pharmaceuticals Limited - 2.91%

In the last one year, the ETF has given a return of 45.6% compared to its benchmark index’s yield of 46% as of July 31, 2024.

Since its Inception, the ETF has given an annualised return of 14.68% to its investors as of July 31, 2024.