Why you should give your portfolio the dose of good health

The importance of healthcare in our lives cannot be stressed enough. The ongoing pandemic has been an eye opener of the same and has shown us how healthcare keeps the world going. In this context, India’s healthcare sector has achieved phenomenal recognition globally on account of its capabilities and strong knowledge base.

With new advancements in healthcare infrastructure, growing demand for quality healthcare from within and outside India, and superior clinical research and R&D in the country, healthcare-oriented businesses offer a long-term wealth opportunity for Indian investors.

Here are a few key reasons to invest in the Indian Healthcare industry and Axis Healthcare ETF

• Healthcare Industry – A huge domestic opportunity: The healthcare sector in India is well-positioned to build its domestic footprint after capturing significant economic interest and credibility in markets abroad.

• Hospital space offers large ‘room’ for expansion: The hospital space in India has enormous growth opportunities, considering that India has a relatively low count^[i] of beds/population and huge scope for expansion in the post-pandemic era.

• Diagnostics - The next big thing in semi-urban/rural regions: Dedicated organized diagnostic players currently account for less than 15%^[ii] of the overall pathology industry, offering scope for consolidation. Further, the next big growth leg for diagnostics could be the underpenetrated rural and semi-urban regions, as testing gains wider acceptance outside of hospitals.

• Pharmacy of the World: India has the largest number of US FDA compliant manufacturing facilities^[iii] outside the US and has significant opportunity for exporting in semi-regulated markets outside US, Japan, and EU. As countries begin to reduce their dependency on China for drugs, India has emerged as a key partner for vaccine and drug manufacturing.

• Favourable Government Policies: The Government of India has extended the PLI scheme to enhance India’s manufacturing capabilities by increasing investment and production in the pharma sector and contributing to product diversification to high value goods, which augurs well for domestic drug makers.^[iv]

• India playing a key role in R&D: Indian drug manufacturers are leading generic players and have developed sizable capabilities in reverse engineering drugs whose patents are near expiry. Further, domestic pharma firms are targeting higher margin complex generics where competition is significantly lower.

• Medical Tourism: India is a preferred destination for medical tourism, owing to relatively affordable treatment options available in the country.

• Healthcare – A defensive addition to your portfolio: Healthcare, as you know it by now, is a recession-proof sector that is part of the essentials category.

• A booster shot of all things healthcare in a single, bite-sized investment: That’s Axis Healthcare ETF defined for you in a single line. While you may not have the time and resources to pick stocks across the healthcare spectrum, Axis Healthcare ETF will do it for you by simply replicating the Nifty Healthcare index, which has been a long-term wealth creator.
  
  This index constitutes the 20 largest healthcare-oriented names by free float market cap, which can be expensive to buy individually, but super affordable with our ETF.

Are you now convinced of healthcare as an ‘essential’ addition to your portfolio for long-term wealth?

Invest in Axis Healthcare ETF!

NFO open 30^th April to 10^th May, 2021.

To know more, please visit Axis Healthcare ETF or contact your Mutual Fund Distributor.

[i] CRISIL, Axis MF Research

[ii] Axis MF Research. Kotak Institutional Equities. Data as of 31^st March 2021

[iii] Axis MF Research. Data as of 31^st March 2021.

[iv] Department of Pharmaceuticals, ICICI Securities, Axis MF Research.