1 week ago
SBI Healthcare Fund Delivers 20% Plus SIP Returns
SBI Healthcare Opportunities Fund invests mostly in healthcare and pharmaceutical companies.
The article says it produced more than 20% annualised returns for monthly investments over three, five and 10 years.
It performed better than the other active healthcare funds compared in the report.
It also beat its benchmark in the listed lump-sum periods.
However, the fund focuses heavily on one industry instead of spreading money across many industries.
That means it could fall more sharply if healthcare companies perform poorly.
The article says the fund may suit experienced investors who already own diversified funds and can accept sector-specific risk.
It says investors should remember that past returns do not guarantee future results.
SBI Healthcare Opportunities Fund recorded SIP XIRRs of 22.58% over three years, 24.04% over five years and 20.97% over 10 years.
It was the only active healthcare or pharma fund listed to exceed 20% across all three SIP periods, according to Value Research data.
The fund’s direct plan delivered lump-sum CAGRs of 24.60% over three years, 18.84% over five years and 15.10% over 10 years.
At least 80% of the fund’s investments must be in healthcare-sector equities, creating greater sector concentration and volatility.
The article says investors should not rely solely on past returns and should assess risk tolerance, portfolio diversification, costs and investment goals.
- Who
- SBI Healthcare Opportunities Fund, managed by Tanmaya Desai, is the fund discussed.
- What
- The fund delivered more than 20% SIP XIRR over three, five and 10 years and outperformed the compared healthcare and pharma funds.
- Where
- The comparison concerns mutual funds available in India and the Indian healthcare and pharmaceutical sector.
- When
- The performance data was reported as of 19 August 2026; the fund’s assets under management data was as of 31 July 2026.
- Why
- The article attributes the sector’s recent strength to factors including post-COVID healthcare spending, generic-drug approvals, China-plus-one manufacturing, company earnings and government support.
Potential Benefits
Risks and Cautions
Historical returns
Potential Benefits
The fund delivered more than 20% SIP XIRR across three, five and 10 years and exceeded the returns of the active healthcare and pharma funds listed in the comparison.
Risks and Cautions
The article cautions that past performance should not be assumed to continue and that mutual fund returns are subject to market risk.
Sector concentration
Potential Benefits
A focused healthcare portfolio can benefit when pharmaceutical, hospital, biotechnology and medical-services companies perform strongly.
Risks and Cautions
At least 80% must be invested in healthcare-sector equities, and the reported portfolio had 93.81% healthcare exposure, increasing concentration and sector-specific volatility.
Investor suitability
Potential Benefits
The article says investors with five- to seven-year goals, existing diversified holdings and tolerance for sector volatility may consider the fund.
Risks and Cautions
It says new investors, people with low risk tolerance and those seeking guaranteed or steady returns should avoid relying on this sectoral fund.
Key facts
- Three-year SIP XIRR
- 22.58%
- Five-year SIP XIRR
- 24.04%
- Ten-year SIP XIRR
- 20.97%
- Assets under management
- Rs 5,405.77 crore as of 31 July 2026
- Direct-plan expense ratio
- 0.75%
- Regular-plan expense ratio
- 1.59%
- Healthcare allocation
- 93.81% of assets according to the fund factsheet as of 31 July 2026
Quotes
SBI Healthcare Opportunities Fund – Direct Plan
Direct plan of the SBI Healthcare Opportunities Fund
“The SBI Healthcare Opportunities Fund – Direct Plan has delivered strong long-term lump-sum returns, outperforming its benchmark across 3, 5 and 10-year time frames.”
financialexpress.com
“The fund has delivered more than 20% returns on SIP investments across three, five, and 10 years.”
financialexpress.com
Sources
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