This theme is about riding the growth story of healthcare in India. Healthcare comprises of pharmaceuticals, hospitals, medical devices, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by government as well as the population.
1 Yr CAGR 56.15%
3 Yr CAGR 21.99%
What is theme all about?
This theme is about riding the growth story of healthcare in India. Healthcare comprises of pharmaceuticals, hospitals, medical devices, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by government as well as the population.
What are macro-economic factors, policy changes driving this trend?
The healthcare sector is expected to grow further given:-
Increasing per capita income,
Increasing health insurance
Government initiatives like Ayushman Bharat-National Health Protection Mission, Pradhan Mantri Jan Arogya Yojana (PMJAY) to provide better healthcare is leading to increasing spends on healthcare.
Why is this theme attractive now?
The per capita government spending on healthcare has nearly doubled from Rs. 1,008 per person in FY15 to Rs. 1,944 in FY20, but is still low. Healthcare market in India is expected to reach US$ 372 billion by 2022 from US$ 110 billion in 2016.
India has traditionally spent less on health, 90% of government expenditure being on the revenue side. Over the last 5 years, the total public expenditure on health has risen at 15% CAGR, much of this due to pay hikes.
Despite of all this, India’s total healthcare spending is at 3.6% of GDP, and is way lower than that of the other countries. The US (16.9%), Germany (11.2%), France (11.2%) and Japan (10.9%)—spend even more. Also, India spends the least among BRICS countries: Brazil spends the most (9.2%), followed by South Africa (8.1%), Russia (5.3%), China (5%).
In India, there is one doctor for every 1,457 people as per the country's current population estimate of 1.35 billion, which is lower than the WHO norm of 1:1000. Hence, there is headroom of growth in medical education and other employment opportunities in this sector.
What industries/ sectors benefit from this?
India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The sector is expected to grow to US$ 100 billion, while medical device market is expected to grow US$ 25 billion by 2025.
The hospital industry in India, is observing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $132 billion by 2023 from $ 61.8 billion in 2017; growing at a CAGR of 16-17%.
The diagnostics industry in India is presently estimated at a value of $4 billion. The share of organized sector is almost 25% in this section (15% in labs and 10% in radiology). The players from organized sector are poised to gain market share from unorganised market.
MoneyWorks4Me method for rating and ranking mutual funds for SIP
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and
ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the
various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Performance Consistency: This is measure based on whether the fund has beaten the benchmark index consistently. For
this we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10
years. The period of rolling is one month and holding period is 3 years. Fund are color-coded Green on Performance when
the fund beats the benchmark more than 90% of the time. It is Orange if it beats 80% to 90% of the time and Red if less
than 80%. Funds with less than 5 year data are color-coded Grey.
Quality of Portfolio Holding: Moneyworks4Me has color-coded stocks as Green, Orange and Red based on whether the
company's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) and
generated positive Free Cash Flow. For Banks it checks whether ROE is greater than 15% and sales has grown over previous
year. Stocks that perform consistently on these combined metrics are color-coded Green (min score 14 out of 20), Orange
(between 8 and 14) and Red (less than 8 out of 20).
Fund are color-coded Green provided the portfolio has 70% holding in Green stocks but not more than 20% in Red stocks.
Funds with more than 20% Red stocks in the portfolio are color-coded Red. The rest are Orange funds
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The
ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number
that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Looking to make the most of market corrections and volatility?
Did you know that market corrections can actually present great opportunities to buy high-quality stocks at discounted prices? By taking advantage of these times of volatility, you can position your portfolio for long-term growth.
At MoneyWorks4me Portfolio Advisory, we specialize in helping investors navigate market fluctuations and build a strong, diversified portfolio. With our collaborative approach, you can maintain control over your investments while benefiting from our expertise and guidance.
If you're interested in learning more and with a minimum portfolio size of 25 L+, we can help you manage your portfolio, no matter the size. let's connect and discuss how we can work together. And as a bonus, we're offering a FREE Portfolio Review using our "Portfolio Manager" tool during our conversation.
So why wait?
Let's get started today and take your portfolio to the next level!
Best Buy Stocks
Do you want to Invest in Undervalued Handpicked stocks and earn high Returns?
Why Buy Quality Stocks
Winning and long lasting portfolio is made of Quality Stocks, but how simple is that?
Important Questions while Buying Stocks
As an Investor most important decision making questions are?
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
You can make an informed decision based on:
Q : Quality :- Q Very Good
Q Somewhat Good
Q Not Good
V : Valuation:- V+UnderValued (UV) V Somewhat UV
V Fair Value
V Somewhat OV
V+ OverValued (OV)
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Make an informed decision for Funds
You can make an informed decision based on:
P : Performance (%)* 14 Very Good
14 Somewhat Good
12 Not Good
Less than 5 year data
Q : Quality of Holding Q Very Good
Q Somewhat Good
Q Not Good
*Color code for outperformance consistency
*Number is average 3 year rolling returns
Want to invest successfully in stocks?
How the heck do you select a solution that ensures it?
Does it get you focused on meeting your financial goals?
Does it get you focused on meeting your financial goals?
Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?
Download APP
