Healthcare Basket
10 stocks from Nifty MidSmall Healthcare. Weekly rotation. CAGR 16.63%. Sharpe 0.89. Thematic satellite.
How It Works
- Step 1 | Universe Start from Nifty MidSmall Healthcare filtered to stocks priced under ₹5000.
- Step 2 | Rank Score every stock in the universe by a momentum composite (price trend over multiple lookbacks, risk-adjusted). The top names by score become the candidate list.
- Step 3 | Select Hold the top 10 names by score. Equal-weight across the book so no single name dominates.
- Step 4 | Rebalance Every 1 week the model re-runs end-to-end. Names that fall out of the top 10 are sold; new entrants are bought. You see the full holdings list at every rebalance.
Who This Is For
Strategy Configuration
Healthcare Basket vs Nifty 50
Both indexed to 100 on inception. Hover for date-by-date NAV. Range chips to zoom; expand button for full window.
NAV indexed to 100 on inception (Jan 2021 or later). Backtested returns include realistic transaction costs. Past performance is not indicative of future results. Source: NSE BhavCopy.
Performance Metrics
| Metric | Healthcare Basket | Nifty 50 |
|---|---|---|
| CAGR | 16.63% | 9.80% |
| Cumulative Return | 115.91% | 59.62% |
| Sharpe Ratio | 0.89 | 0.73 |
| Max Drawdown | -33.29% | -16.92% |
| Volatility | 19.44% | 14.04% |
Cost Decomposition
Worst 5 Drawdowns
| Started | Recovered | Max DD | Duration (days) |
|---|---|---|---|
| 2021-07-23 | 2023-07-28 | -33.29% | 735 |
| 2024-12-13 | 2025-06-20 | -19.39% | 189 |
| 2025-10-24 | 2026-04-17 | -11.31% | 175 |
| 2024-03-01 | 2024-06-21 | -10.24% | 112 |
| 2023-10-06 | 2023-11-03 | -7.13% | 28 |
Yearly Returns
Sector allocation
2 sectors represented in the equity sleeve. Largest concentration: Pharma & Healthcare at 60.2%. Equal-weighted at the stock level, so sector weights drift with which momentum names rank highest.
261 rebalances . 2 sectors touched . 2 live today.
- 2026-05-01 Pharma & Healthcare -19pp, Diversified +19pp added COHANCE, FORTIS, POLYMED . removed SAILIFE
- 2026-03-20 Pharma & Healthcare +10pp, Diversified -10pp removed KIMS, IPCALAB
- 2026-02-20 Pharma & Healthcare -10pp, Diversified +10pp added KIMS, GLAXO
- 2025-02-14 Pharma & Healthcare -11pp, Diversified +11pp added MEDANTA, IPCALAB . removed GRANULES
- 2024-09-27 Pharma & Healthcare -12pp, Diversified +12pp removed GRANULES, AUROPHARMA
- 2024-06-14 Diversified -15pp, Pharma & Healthcare +15pp added GRANULES, NATCOPHARM . removed FORTIS
- 2024-03-01 Diversified -11pp, Pharma & Healthcare +11pp added NATCOPHARM . removed AJANTPHARM, GLAND
- 2023-11-03 Pharma & Healthcare -14pp, Diversified +14pp added ASTERDM . removed JBCHEPHARM, GRANULES
- 2023-06-30 Pharma & Healthcare -14pp, Diversified +14pp added KIMS . removed LAURUSLABS, NATCOPHARM
- 2022-04-22 Pharma & Healthcare -12pp, Diversified +12pp added NEULANDLAB, KIMS, BIOCON . removed GRANULES
- 2022-02-18 Diversified -11pp, Pharma & Healthcare +11pp added LAURUSLABS . removed AJANTPHARM, GLAXO
Current Holdings
10 positions as of 2026-05-11 rebalance. Allocation percentages reflect equal-weighted sleeve at rebalance day; current values drift with price.
Why This Strategy
This is the second thematic satellite card on the lineup, alongside Energy Basket. The strategy screens the Nifty MidSmall Healthcare universe for the top 10 momentum-ranked stocks priced under 5000, holds them equal-weighted at roughly 10 percent each, and rotates every week.
That weekly rotation matches Energy Basket's turnover profile, but the universe is narrower and more defensive: mid and small cap pharma, hospitals, and life sciences. 2023 was the standout year at +57.2% as the post-Covid healthcare capex cycle accelerated. 2024 closed +40.0%. 2025 closed +0.6% as the sector cooled and pharma giants worked through pricing pressure. 2026 YTD +16.2% — the cycle has clearly turned back on.
The 5-year backtest produced a cumulative return of 115.91% against the Nifty 50's 59.62%. CAGR 16.63%. Sharpe 0.89. Max drawdown 33.29% over 735 days (the 2021-2023 healthcare correction, the deepest cycle the universe has been through in the backtest window).
This is NOT a core holding. Single-sector concentration risk is real — pharma stocks move as a bloc when USFDA decisions, domestic price caps, or hospital reimbursement rules shift. The right sizing is 5 to 10 percent of equity, as a satellite tilt for an investor with an explicit thematic view on Indian healthcare (specialty pharma, hospital chains, life sciences, CDMOs). Investors without that view should put the same capital into Allcap or Mid-Smallcap instead.
CAGR 16.63% versus Nifty's 9.80%. Sharpe 0.89. Max drawdown 33.29%. Volatility 19.44%. Min 23351.
Key Takeaways
- Thematic healthcare sector momentum on Nifty MidSmall Healthcare
- 10 stocks equal-weighted, rotated weekly
- CAGR 16.63% with 33.29% max drawdown
- Defensive sector tilt | 5-10% satellite sizing alongside Energy Basket
Frequently Asked Questions
What is the Healthcare Basket strategy?
What is the minimum investment for Healthcare Basket?
How does Healthcare Basket compare to the Nifty 50?
What is the worst drawdown Healthcare Basket has experienced?
What are the fees on Healthcare Basket?
Can I exit Healthcare Basket at any time?
Documents
Last rebalance | 2026-05-08
Full history →vs 2026-05-01 cycle · 1 added · 3 removed · 10 retained
Get notified when Healthcare Basket rebalances
Free email alert on the morning of every rebalance with the IN / OUT names and rationale. Unsubscribe with one click.
Walk the risk band
Healthcare Basket sits in the Very High bucket. Take one step in either direction:
Learn the mechanics behind Healthcare Basket
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Run Healthcare Basket in your own broker account
Capital never leaves your broker. 0.2% on traded value. Minimum ₹23351. Cancel any time.