MUMBAI: The world’s population is aging, spurred by increased life expectancy and declining birth rates. This is a trend that India is contending with too. However, India also has a relatively young median age, creating a unique demographic scenario.
While the majority of the Indian population is still young, the absolute number of elderly individuals is also growing. This means healthcare investments must cater to both ageing-related needs—such as chronic disease management and elder care—and the healthcare demands of a young, aspirational population seeking preventive and digital health solutions.
The Bajaj Finserv Healthcare Fund identifies potential opportunities in this evolving landscape by focusing on long-term megatrends that shape the industry, including regulatory changes, economic growth, demographic shifts, and evolving social behaviours.
A megatrends approach
Megatrends are long-term, structural shifts that reshape industries, economies, and societies over decades. In healthcare, these include regulatory changes, economic developments, demographic shifts, and evolving social behaviours -- factors that can create long-term opportunities in the sector.
The Bajaj Finserv Healthcare Fund seeks to leverage such opportunities by identifying and investing in companies aligned with these trends. By identifying and investing in these opportunities before the rest of the market recognises them, this thematic equity fund seeks to generate better return potential in the long term.
The megatrends shaping healthcare investments
● Regulatory megatrends
Governments across the world are increasing their focus on healthcare policies. In India, initiatives such as Ayushman Bharat Yojana and production-linked incentives (PLI) for pharmaceuticals are encouraging growth in the sector. Companies that align with these regulatory changes are expected to benefit in the long run.
● Economic megatrends
India’s growing middle class, rising disposable incomes, and increasing healthcare awareness are driving demand for quality medical services. In particular, the health insurance space offers significant opportunities. The health insurance market is rising but its coverage is low.
Health expenditure as a percentage of GDP is rising, and with it, the need for private healthcare investments.
● Demographic megatrends
An ageing population is driving greater demand for age-related healthcare services, such as elderly care, chronic disease management, and specialty hospitals. At the same time, India’s young population continues to seek better access to healthcare, including digital health platforms, fitness solutions, and mental well-being services. The coexistence of these two trends presents a wide array of investment opportunities.
● Social megatrends
Lifestyle diseases such as diabetes, hypertension, and obesity are becoming more common due to urbanisation and sedentary lifestyles. At the same time, there is growing interest in preventive healthcare, wellness, and traditional medicine. This shift is influencing how people spend on healthcare, benefiting businesses in areas like diagnostics, nutraceuticals, fitness, and Ayurveda.
Sectors offering investment opportunities
● Pharmaceuticals
With ageing comes a rise in chronic diseases such as heart conditions, arthritis, and neurological disorders. Pharmaceutical companies catering to these needs are experiencing significant demand. India’s strong generics market, coupled with increasing R&D in specialised medicines, makes pharma a key sector for healthcare investments.
● Hospitals and healthcare facilities
As people live longer, they require frequent medical attention, specialised care, and advanced treatments. This is driving demand for multi-specialty hospitals, elderly care centres, and home healthcare services. Investments in modern hospitals with advanced technology are expected to grow as people seek better medical infrastructure.
These and other shifts are creation opportunities across the healthcare space, including in pharmaceuticals, nutraceuticals, diagnostics, Contract Research and Manufacturing Services (CRAMS), traditional medicine and lifestyle disease management.
An investment opportunity
India’s ageing population and rising life expectancy are reshaping the healthcare sector. The demand for pharmaceuticals, hospitals, diagnostics, and research, manufacturing, lifestyle management and preventative care is expected to grow in the coming years. The Bajaj Finserv Healthcare Fund identifies the megatrends potential investment opportunities in these areas. By focusing on long-term trends in regulation, economy, demographics, and social changes, the fund aims to navigate the evolving healthcare landscape and stay relatively resilient in the face of short-term market shifts.
Those looking to invest in equity funds can consider this scheme after factoring in their risk appetite and investment horizon. Bajaj Finserv AMC offers both Systematic Investment Plan (SIP) and lumpsum options in the Bajaj Finserv Healthcare Fund. To invest, or learn more about the scheme, visit www.bajajamc.com. You can invest directly through Bajaj Finserv AMC or through a registered mutual fund distributo
