Investing In Hospitals

With increasing healthcare costs, will investing in stocks of Apollo Hospitals and Fortis a good option? Are there any mutual funds that invest only in such stocks?
- Naval Patel

Your idea of investing in stocks of companies that are in the hospital business is a good idea. There are several fund managers who adopt such investment strategies to maximise returns and gain from the investment prospects. However, this approach does have its own risks that you should be aware of before committing investments.

As for mutual funds; no fund exists that invests only in the hospital sector alone. The closest that you can get to is the pharma sector fund which investments in pharma and associated companies which could also have investments in hospital stocks.

This article was originally published on May 10, 2011.