Performance of managed portfolios: a study with reference to pharma funds in india

The present study is an attempt to examine the performance of selected pharma funds in India using emerging market data. The portfolio manager performance is evaluated in terms of providing superior returns, offering the benefits of diversification, stock selectivity abilities and market timing abilities. The study found that Reliance Pharma Fund has posted superior performance followed by Franklin Pharma Fund, while SBI MSU Pharma Fund has shown poor performance in terms of providing better returns and is highly volatile. Further, Reliance Pharma Fund and Franklin Pharma Fund have outperformed the benchmark performance. All the sample pharma funds have exploited reasonable diversification strategy to a moderate extent in forming their portfolio. In terms of net selectivity Franklin Pharma fund and Reliance Pharma Fund have shown superior performance while the market timing skills were virtually absent. The findings reported in the study have wider ramifications in articulating investment strategies and the capital market hypothesis.