R Sukumar, Fund Manager, KP Pharma Fund, on the potential of Pharma Sector

R Sukumar is managing Kothari Pioneer Pharma Fund since inception in April 1999. Except a few isolated bouts of buying, the markets have given a cold shoulder to pharma stocks. The Rs 52 crore fund has been a non-performer since launch with an annualised return of (-) 1.02% and has marginally under performed BSE Healthcare index. The last one- year has been no different with the fund losing nearly 30% as on January 31, 2001. However, Sukumar continues to be bullish on the prospects of the sector and advises investors to be patient with their investments. Q. What is the holding period that you would suggest an investor in a pharma fund and what would be a reasonable return he could expect in that period? Sukumar: My view is that investors should be prepared to hold any equity fund through economic and stock market cycles. Normally, these cycles repeat every 5