NFO Alert: A Rs 1000 start could put you on track to ride India’s next big wellness boom

Baroda BNP Paribas Asset Management has launched a new fund offering (NFO) — the Baroda BNP Paribas Health and Wellness Fund, which opened for subscription on Monday, June 9, 2025, and will close on June 23, 2025.

This is an open-ended equity scheme focused on companies expected to benefit from the growing demand for healthcare and wellness services in India and globally. The fund aims to tap into what it calls a "mega trend" of structural growth in the healthcare and wellness sector that has been developing over several decades.

India’s Healthcare Spend Expected to Rise

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India’s per capita health expenditure remains significantly lower compared to developed economies. However, it is expected to grow rapidly due to increasing purchasing power, rising health awareness, improved life expectancy, and a surge in chronic diseases. The fund seeks to leverage this expected shift in healthcare spending patterns.

Investment Details

Investors can begin investing in the Baroda BNP Paribas Health and Wellness Fund with a minimum of Rs. 1,000, and subsequent investments can be made in multiples of Re. 1.

Who Should Invest?

This thematic fund is better suited for investors with an investment horizon of three years or more. It provides an opportunity to gain exposure to India's evolving healthcare ecosystem and rising wellness-focused businesses.

BSE Healthcare Index Outperformance

Historically, the BSE Healthcare Index has consistently outperformed the BSE 500 TRI over 1, 3, 7, and 15-year periods, driven largely by strong earnings growth across companies of all market capitalizations — large-cap, mid-cap, and small-cap.

Sector Growth Outlook

Suresh Soni, CEO of Baroda BNP Paribas AMC, said that life expectancy in India has more than tripled over the past century. “From childhood to old age, every stage of life demands continuous health-related spending. India’s per capita healthcare spending is still low, indicating that this sector could remain a long-term investment opportunity with strong profit potential,” he added.

He also pointed out that the incidence of serious illnesses in India is rising sharply. Cases of heart disease, diabetes, and cancer could increase by 34–41 per cent in this decade, highlighting the need for a stronger healthcare system based on prevention and treatment — which also creates investment opportunities.

A $200 Billion Investment Opportunity
According to Sanjay Chawla, CIO – Equity at Baroda BNP Paribas AMC, India offers a $200 billion market opportunity across over 100 investable companies in pharmaceuticals, diagnostics, medtech, hospitals, insurance, and healthcare research.

India’s Global Pharma Footprint

1) India supplies 50 per cent of Africa’s generic medicine needs.

2) 40 per cent of generic drugs used in the U.S. come from India.

3) 25 per cent of medicines used in the UK are sourced from India.

4) India holds the largest number of USFDA-approved drug manufacturing facilities outside the U.S.