InCred Healthcare Portfolio

What Is InCred Healthcare Portfolio PMS?

The InCred Healthcare Portfolio is a healthcare-focused equity portfolio management service (PMS) offered by InCred Asset Management Private Limited. Managed by Aditya Khemka, the strategy invests primarily in equity and equity-related instruments connected to India's healthcare ecosystem, with exposure across pharmaceuticals, hospitals, diagnostics, branded generics, active pharmaceutical ingredients (APIs) and contract research, development and manufacturing (CRDMO/CDMO).

The portfolio follows a multi-cap approach with a higher focus on mid- and small-cap companies. It uses bottom-up stock selection and a research-driven framework to identify businesses based on their fundamentals, financial quality and valuations. The strategy is benchmarked against the BSE 500 Total Return Index (TRI).

Unlike a broad-market equity portfolio, the strategy concentrates its investment exposure within healthcare-related businesses. This allows the portfolio to target opportunities arising from pharmaceutical innovation, domestic healthcare demand, hospital capacity expansion, diagnostic penetration and changes in global pharmaceutical supply chains.

The portfolio uses benchmark-agnostic bottom-up stock selection. This means stock selection is driven by the investment team's assessment of individual businesses rather than simply replicating the composition of its benchmark.

The strategy is intended to provide sector-specific equity exposure. Healthcare may offer long-term growth opportunities, but the portfolio remains subject to equity-market volatility, industry-specific risks, stock concentration and changes in business valuations. It is generally more appropriate to evaluate it as a satellite allocation alongside diversified core investments rather than as a complete equity portfolio.

InCred Healthcare Portfolio – Key Fund Details

Note: Confirm the latest AUM, minimum investment, inception date, benchmark and fund manager details against current product disclosures before publishing.

InCred Healthcare Portfolio vs InCred Focused Healthcare Equity – Key Differences

The InCred Healthcare Portfolio and InCred Focused Healthcare Equity are healthcare-oriented equity strategies associated with InCred Asset Management. Investors comparing them should examine their individual mandates, holdings, portfolio concentration, market-cap exposure, fee arrangements and performance records.

The distinction between healthcare strategies should not be judged by their names alone. Two portfolios investing in the same broad sector can have different exposures to pharmaceutical exporters, domestic branded-generic companies, hospitals, diagnostics and smaller healthcare businesses.

A comparison should therefore use the latest portfolio disclosures and performance information measured over the same periods. Investors should also compare net-of-fee returns where available and consider whether the strategies overlap in their underlying holdings.

InCred Healthcare Portfolio Investment Strategy and Process

The InCred Healthcare Portfolio combines healthcare-sector research with a bottom-up approach to stock selection. Its objective is to identify companies with attractive business characteristics and valuations while assessing the sustainability of their financial performance.

Bottom-Up Stock Selection

Bottom-up research begins with the individual company rather than a broad prediction about the market or sector. The investment team evaluates business fundamentals, financial performance, qualitative factors and quantitative indicators to assess potential investments.

In healthcare, this analysis can vary significantly by subsector. For pharmaceutical companies, relevant considerations may include product mix, pricing pressure, regulatory compliance, research pipelines and the contribution of domestic versus export markets. For hospitals, operating efficiency, occupancy, expansion plans and debt levels can affect business performance.

For diagnostics companies, the economics of test volumes, pricing, network expansion and utilisation may be important. API and CRDMO businesses can be affected by manufacturing capabilities, customer relationships, regulatory standards and global sourcing trends.

Business Quality and Cash-Flow Sustainability

The strategy's stated investment philosophy distinguishes between strong businesses available at fair valuations, good businesses available at discounts and businesses that should be avoided.

Financial quality is important because revenue growth does not necessarily translate into sustainable profits or cash flows. A company may need substantial capital expenditure, carry significant debt or face changes in product pricing that weaken its returns.

Evaluating cash-flow sustainability can help investors understand whether a company's reported growth is supported by its operating economics. However, financial strength alone does not eliminate investment risk, and business outcomes can change as competition, regulation and market conditions evolve.

Valuation Discipline

The price paid for a stock influences the returns an investor may ultimately earn. Even a company with a strong market position can deliver disappointing investment results if its valuation already reflects very optimistic expectations.

The InCred approach seeks to assess business quality alongside valuation. The objective is to identify a reasonable relationship between the price paid and the company's underlying business prospects rather than relying only on a positive industry outlook.

Healthcare companies may experience significant valuation changes because of regulatory developments, new products, earnings revisions or shifts in investor expectations. Valuation discipline therefore remains relevant even when a company's long-term business opportunity appears attractive.

Benchmark-Agnostic Investment Approach

The strategy uses bottom-up stock selection and is described as benchmark-agnostic. This means portfolio construction is not simply designed to reproduce the sector or stock weights of the BSE 500 TRI.

Benchmark-agnostic investing can provide flexibility to hold positions based on the investment team's assessment of individual companies. It can also lead to meaningful differences between the portfolio and the benchmark, including differences in market-cap exposure, sector allocation and short-term performance.

Investors should therefore assess returns against the stated benchmark while recognising that a healthcare-focused portfolio has a narrower investment universe than a broad-market index.

Healthcare Subsectors in InCred Healthcare Portfolio

The portfolio invests across several areas of the healthcare ecosystem. Each subsector has different drivers of demand, profitability, capital requirements and risk.

• Pharmaceuticals and branded generics: Companies may benefit from established brands, distribution networks and recurring demand. They remain exposed to competition, product pricing, regulatory standards and changes in the product portfolio.
• Unbranded generics: These businesses can be affected by supply-demand dynamics, price competition, manufacturing costs and customer concentration.
• Hospitals: Hospital operators depend on factors such as occupancy, treatment mix, operating efficiency, capacity utilisation, expansion plans and capital expenditure.
• Diagnostics: Diagnostic businesses may benefit from increased testing demand, preventive healthcare and expansion of organised networks. Competition, pricing and utilisation can affect profitability.
• APIs and CRDMO/CDMO: These businesses provide pharmaceutical ingredients or contract research, development and manufacturing services. Their prospects may depend on manufacturing quality, regulatory compliance, customer relationships, production efficiency and global sourcing decisions.
• Healthcare-related businesses: The broader investment universe may include other companies connected to the healthcare ecosystem, depending on the portfolio mandate and current investment opportunities.

The weight assigned to each area can change as the portfolio manager adjusts holdings. Exposure to a subsector should therefore be assessed from the latest allocation disclosure rather than assumed to be fixed.

InCred Healthcare Portfolio – Sector and Market-Cap Allocation

As of 30 September 2026, the portfolio's reported sector allocation and market-cap breakdown were as follows.

Healthcare Subsector Allocation

Market-Cap Allocation

The reported market-cap percentages total 99%, reflecting rounding or unclassified residual exposure. Market-cap classifications follow AMFI classification, while subsectors use the portfolio manager's internal classification.

The allocation illustrates the portfolio's significant small-cap exposure and substantial weights in hospitals, API/CRDMO and diagnostics as of the reporting date. Such positioning can increase sensitivity to individual company developments, liquidity conditions and changes in sector sentiment. Portfolio allocations may change over time.

Investors should review the latest portfolio disclosures before making an investment decision rather than assuming that these allocations will remain unchanged.

Minimum Investment, Fees and Exit Load for InCred Healthcare Portfolio

The minimum investment in the InCred Healthcare Portfolio is ₹50 lakh. This makes the strategy relevant to investors who meet the PMS entry requirement and have the financial capacity to tolerate fluctuations in a sector-focused equity allocation.

Published product information lists a fixed management fee of 2.50% and performance-fee options linked to the selected arrangement. The reported terms include a performance-fee structure with an 8% hurdle or an alternative structure without a hurdle, with profit-sharing percentages depending on the chosen arrangement. An exit load of 2% for redemptions within the first year and 0% thereafter has also been reported.

The applicable fee schedule may depend on the investor's agreement and chosen fee option. Before investing, the current disclosure document and PMS agreement should be checked for the exact management fee, performance-fee calculation, hurdle rate, profit-sharing terms, exit conditions and other applicable expenses.

Fees affect the investor's net return. Comparing strategies on headline performance alone can therefore give an incomplete picture if the fee arrangements differ.

Taxation of InCred Healthcare Portfolio PMS

Tax treatment depends on the investor's residential status, the nature of transactions, holding periods and the tax rules applicable for the relevant financial year. In a PMS, securities are generally held in the individual client's account, and tax consequences arise from the transactions and income applicable to that account.

For Indian resident investors, gains from listed equity shares may be classified as short-term or long-term capital gains according to the applicable holding-period rules. The relevant tax rates, exemptions, securities transaction tax requirements and other provisions can change when tax laws are amended.

A portfolio that actively buys and sells securities may generate multiple taxable transactions. Dividends and other forms of income may also have separate tax treatment. The actual tax outcome depends on the investor's circumstances and applicable law.

Non-resident investors may need to consider additional rules relating to residential status, withholding taxes, treaty provisions and repatriation. Investors should consult a qualified tax professional for advice based on their own circumstances.

NRIs can also review ALTPORT's information about PMS for NRIs and confirm their eligibility and applicable requirements with the portfolio manager.

Key Risks of InCred Healthcare Portfolio PMS

The InCred Healthcare Portfolio carries equity-market risk as well as risks associated with its healthcare-sector focus. The healthcare industry has long-term demand drivers, but that does not make healthcare stocks defensive, safe or immune to market declines.

Healthcare Sector Concentration Risk

A healthcare-focused strategy has a narrower investment universe than a diversified all-sector equity portfolio. Adverse developments affecting pharmaceutical companies, hospitals or other healthcare businesses can influence multiple holdings at the same time.

Regulatory and Compliance Risk

Pharmaceutical and healthcare companies are subject to regulatory standards relating to manufacturing, product quality, clinical processes and approvals. Warning letters, failed inspections, delayed approvals or product restrictions can affect operations and earnings.

Pricing and Competition Risk

Drug pricing pressure, competition from generic products, changes in product mix and increased competition between healthcare providers can affect margins. A business with strong historical profitability may face pressure if its pricing power weakens.

Currency and Export Risk

Companies with significant overseas revenues may be affected by currency movements, overseas demand and regulatory conditions in export markets. Changes in exchange rates can influence reported revenue and profitability.

Small-Cap and Liquidity Risk

The portfolio's reported allocation was heavily weighted towards small-cap companies as of 30 September 2026. Smaller stocks can experience greater price volatility and may be more difficult to sell quickly during stressed market conditions.

Valuation and Business Risk

A company can deliver weaker-than-expected earnings, face higher costs or fail to execute its expansion plans. If market expectations change, its share price may decline even when its business remains operational.

Investors should consider whether they can withstand material fluctuations and whether the portfolio complements their existing equity holdings. The strategy does not offer capital protection or assured returns.

Who May Consider InCred Healthcare Portfolio PMS?

The InCred Healthcare Portfolio may be considered by investors who want a dedicated allocation to India's healthcare ecosystem and understand the risks associated with sector-focused equity investing.

It may be relevant for investors who:

• Have a long-term investment horizon and can tolerate equity-market volatility.
• Want exposure to pharmaceutical companies, hospitals, diagnostics and related healthcare businesses.
• Understand the implications of substantial small-cap exposure and sector concentration.
• Already have a diversified core portfolio and are evaluating a satellite allocation to a specific investment theme.
• Meet the minimum investment requirement and can accept the possibility of losses.

A healthcare PMS should generally be evaluated alongside diversified investments rather than treated as a complete portfolio solution. Investors should assess how much healthcare exposure they already have through direct stocks, mutual funds, other PMS strategies or employer-related holdings.

Investors seeking a broader equity allocation may also review the InCred Multicap Portfolio and compare its mandate with their overall financial objectives.