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Should I invest in Tata India Pharma & HealthCare Fund?

The New Fund Offer (NFO) of Tata India Pharma & HealthCare Fund is open for subscription from 4 to 18 December

Tata India Pharma & HealthCare Fund is going to be opened from 4th December 2015. Please share your thoughts on this. Should I invest in this fund or wait for some more days?
- Rakesh Chikhalkar

The New Fund Offer (NFO) of Tata India Pharma & HealthCare Fund is open for subscription from 4 to 18 December. We do not recommend investing in NFOs because we believe that investing in a scheme with a proven performance record is better than investing in an untested scheme. Also, Tata India Pharma & HealthCare Fund, as the name suggests, is a sector scheme that would invest in pharmaceutical and healthcare sectors. Again, we don't recommend investing in sector funds. It is important to time the entry and exit in sector schemes. This is because the market always favour some sectors over the others and these favourites keep changing over a long period. An ordinary investor would find it difficult to time their entry and exit in these schemes. Sector funds can also adversely impact the overall performance of the portfolio, as these schemes would be forced to hold on to or continue investing in the sector even when it is out of favour because of the investment mandate.

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