Pharmaceutical sector-- A safe haven in the economic crisis

Since the beginning of this year, due to the serious impact of the epidemic, small masks have gone from few people at ordinary times to sold out later, from low prices at the beginning to being sold at tens or even hundreds of times higher prices. it has also drawn people's attention to the medical industry represented by the "mask economy". Medical stocks continue to ride the wind and waves, occupy a high position, is it possible to start with the medical fund at this time? Will the "mask economy" last?

Changniu risk aversion: this is the medical plate.

As can be seen from the first-half earnings chart of the theme fund, the medical and pharmaceutical industries reached the top with earnings of more than 70 per cent, becoming the veritable best sector in the first half of 2020. For a long time, the medical field has come out of the stable situation of long cattle because of the aging development and its necessity, and this year's sudden epidemic has also made many medical enterprises work silently into people's field of vision.

In terms of pharmaceutical segment, there are generic drugs, innovative drugs, traditional Chinese medicine, biological vaccines, medical machinery, medical services and even pharmacy sales channels, etc., but the performance of the two segments of biological vaccines and medical devices is more eye-catching from time to time. In addition, affected by the epidemic events, the increase of the biological vaccine plate is also ahead, and the performance and profit growth are relatively more certain.

Although the future is optimistic about the overall tendency of the pharmaceutical industry, but when it comes to the practical level, some investors still say that they should be cautious about their positions, and there is indeed a higher degree of uncertainty than in the early days. If the position is high, you can temporarily reduce part of the position to profit-taking, and turn the funds to sectors with long-term investment value but not so sharp growth, such as technology, consumption and so on.

How to choose medical fund

The pharmaceutical and medical industry is a very large industry. According to the specific business, it can be divided into innovative drugs, generic drugs, traditional Chinese medicine, biological vaccines, CRO services, pharmaceutical retail, gene sequencing, medical devices, medical services. The medical device industry can be divided into in vitro diagnosis, minimally invasive surgery, medical imaging, health care equipment, rehabilitation equipment and so on. With a wide variety of industry segments, how should we choose medical funds?

Global industry index: S&P Global Inc. medical index, etc.

For small partners who want to worry, tracking the index fund of all-finger medicine is still a good choice. Anyway, the performance of the "catch all" industry fund has always been at the middle level of industry investment. For example, S&P Global Inc. 1200 Healthcare Industry Index, covering S&P Global Inc. 1200 index stocks, belong to the GICS (global industry classification standard) health care industry companies.

The following chart lists the main positions and returns of several medical and pharmaceutical funds in the past six months:

Practical operation

After learning about the prosperity of the industry through the index, it is time for the specific selection of funds. The leading rise in pharmaceutical stocks this year has led to an excellent performance of many medical funds. When investors layout these funds, they also need to observe the investment ability of fund managers, market trends, product types and other factors.

To choose a medical fund, it is important to choose a fund manager first. There is a saying in the pharmaceutical industry that there is one medicine and one industry, and the ability of fund managers in different professional fields is not only the same. Medical professional knowledge can help fund managers grasp the market prospects, R & D difficulties, risks and other contents of pharmaceutical products. Fund managers who focus on the pharmaceutical industry. The higher the concentration, the deeper the circle of ability.

In addition, we should also pay attention to the fund style. Some medical theme funds are partial to the concept of "Internet + Medical", some to "medicine", some to "health", and some to "equipment". Investors can arrange the layout according to their own preferences.

Prospect of future trend

In the early days, the competitiveness of pharmaceutical companies only came from inherited products and their own sales capabilities, but over the past few years we have seen a steady increase in the size of the pharmaceutical market.

At the same time, there has been a significant shift in the policy of the pharmaceutical industry, which reflects all kinds of support for innovative drugs in many aspects, such as the examination and approval of new drugs, the inclusion of health insurance and so on. From then on, the investment logic of the pharmaceutical industry has also changed accordingly, and the R & D investment and product pipeline layout of enterprises have become one of the core criteria for selecting pharmaceutical stocks.

It is estimated that the population over 60 in China will reach about 30% of the total population in 2050. With the aggravation of the aging trend in our country and the continuous development in the fields of medicine and biological health, the prospect market of this industry will be optimistic for a long time.

Therefore, the best way to grasp the spring of the medical industry is to choose the theme funds with a higher proportion of pharmaceutical stocks, pay attention to the management ability of fund managers, and choose varieties with better long-term performance.