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Pink Health

In a category that delivered an average return of 9%, Reliance Pharma managed to deliver a whopping 43.2%. some excellent stocks picks allowed the fund to top its category

Reliance Pharma has beaten peers in its category by leaps and bounds

The pharma sector has proved to be a laggard in the past one year. For the one-year period ended December 10, 2007, the BSE Health Care index gained a meager 9.61 per cent. Naturally, it's only fair to expect pharma funds to be badly hit. And that they are. There are currently five pharma funds in the industry, managing overall assets of Rs 351 crore (as on November 30, 2007). All of them together delivered an average return of 9 per cent, underperforming the index. But, Reliance Pharma appears to be in the pink of health. It has outperformed the category and its peers convincingly. During the same one-year period when the category average was 9 per cent and the pharma index delivered 9.61 per cent, this fund gave an astounding 43.2 per cent return. This is nothing new for the pharma fund. Reliance Pharma has managed to top the category ever since it's launch in 2004 and has maintained a concentrated portfolio of 13-15 stocks for over a year now. The fund managed to lead the pack by going for some excellent stock picks like Divi's Laboratories. The stock has yielded 223.4 per cent in the above one-year period. The stock continues to be its top holding.

Other picks that have paid off include Ankur Drugs & Pharma and Dishman Pharmaceuticals & Chemicals.

Being the biggest in its category, the fund has Rs 117 crore (as on November 30, 2007) of assets under management.