Baroda BNP Paribas Asset Management India Private Limited has introduced a new investment opportunity — the Baroda BNP Paribas Health and Wellness Fund.
This New Fund Offer (NFO) opens on June 9, 2025, and closes on June 23, 2025. It is an open-ended equity scheme that will invest in companies expected to benefit from the rising demand for healthcare and wellness services in India and globally.
The fund aims to take advantage of the long-term growth in the healthcare sector. Currently, India’s per capita health spending is much lower than that of developed countries, but this is changing due to rising incomes, better awareness, longer life spans, and increasing chronic illnesses.
Key NFO Details
Fund House: Baroda BNP Paribas Mutual Fund
Open Date: June 9, 2025
Close Date: June 23, 2025
Type: Open-ended equity (sectoral pharma)
Minimum Investment: ₹1,000
Lock-in Period: None
Exit Load: 1% if redeemed within 1 year
Risk Level: Very High
Benchmark: BSE Healthcare TRI
Why Invest in This Fund?
Strong Past Performance:
The BSE Healthcare Index has beaten the BSE 500 TRI over 1, 3, 7, and 15 years due to strong earnings growth across large, mid, and small-cap companies.
1-Year Return: 21.4%
5-Year CAGR: 21.7%
10-Year CAGR: 10.6%
The NSE Healthcare Index has also shown strong returns:
1-Year Return: 18.44%
5-Year CAGR: 20.37%
Since Inception CAGR: 14.88%
Who Should Invest:
This fund is ideal for investors with a goal of 3 years or more who want to benefit from the expanding health and wellness industry.
Investment Strategy:
Focus on Pharma and Healthcare: Invests in companies that gain from the sector’s growth.
80% Allocation: At least 80% of the fund goes into pharma, healthcare, and related services.
Actively Managed: Follows a bottom-up stock selection strategy.
All Market Caps: Invests across large, mid, and small-cap companies.
The Future of Healthcare Investment in India
Suresh Soni, CEO of Baroda BNP Paribas AMC, highlighted that the average lifespan in India has tripled over the last century. People now need continuous healthcare throughout their lives,
and the country’s current health spending per person remains low — creating long-term investment potential.
The rise in chronic diseases is also a major factor. India may see a 34–41% increase in cases of heart disease, diabetes, and cancer during this decade. This calls for better healthcare infrastructure, making the sector ripe for investment.
Sanjay Chawla, CIO-Equity, said that India presents a $200 billion investment opportunity across pharma, diagnostics, medtech, hospitals, insurance, and health research — with over 100 investable companies.
India’s Pharma Industry: A Global Leader
Supplies 50% of Africa’s generic drugs
Provides 40% of generic drugs used in the US
Accounts for 25% of drugs used in the UK
Has the largest number of USFDA-approved drug manufacturing sites globally
Sources: PIB (Press Information Bureau), December 17, 2024; BCG Analysis, 2024; Screener; NSE Fact Sheet.
