The ICICI Prudential Pharma Healthcare & Diagnostics Fund has delivered a 25.3% CAGR over three years, ranking as the top performer among peer schemes with over ₹1,500 crore in assets. Investors should note that while this fund outpaced its benchmark significantly, sector-specific funds often show varying performance across different timeframes.
The ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund has outperformed its peers in the healthcare and pharmaceutical sector mutual fund category, delivering a 25.3% compounded annual growth rate (CAGR) over the past three years. This performance places the fund ahead of notable competitors such as the SBI Healthcare Opportunities Fund, which recorded a 23.9% return, and the Mirae Asset Healthcare Fund, which delivered 23.8% over the same period, according to data from ACE MF as of July 7, 2026.
Comparing Performance and Benchmarks
The fund’s ability to generate returns has been notably higher than its benchmark index. Over the three-year period, the fund surpassed its benchmark by 16 percentage points, as the index itself managed a return of 9.3%. Furthermore, the fund showed resilience during shorter, more difficult cycles. In the last year, while the benchmark index recorded a decline of 3.1%, the fund managed to outperform that benchmark by 11.2 percentage points.
Investors should be aware that leadership within sector-specific funds is often dynamic and changes depending on the time horizon being analyzed. While the ICICI Pru fund leads on a three-year basis, other funds have demonstrated strengths over different durations. For instance, the DSP Healthcare Fund reported a 21.2% return over a three-month period, and the Mirae Asset Healthcare Fund recorded a 13.7% return over the past one year. Additionally, the SBI Healthcare Opportunities Fund showed a 6.0% gain over the most recent one-month period.
Understanding Sector-Specific Risks
Investing in sector-focused funds carries specific risks compared to diversified mutual funds. Because these funds concentrate their investments entirely within healthcare and pharmaceuticals, they are highly sensitive to sector-specific changes, such as new government regulations, drug pricing policies, patent cliffs, and supply chain disruptions. When the entire sector faces headwinds, these funds typically lack the cushion that a diversified portfolio would provide. Investors considering such funds should evaluate their own risk tolerance and ensure that these products form only a small part of a broader, well-diversified investment strategy. The next important step for investors is to monitor whether the fund can maintain its relative performance as market conditions and sectoral trends evolve.