Overview
Healthcare stocks are generally considered ‘defensive’ but strong performers over the long term
Long-term growth drivers include demographic change, emerging markets and public funding
Covers a broad investment theme: pharmaceuticals, medical technology/robotics, biotechnology, health insurance, wellbeing
Opportunities through innovations such as in diagnostics (artificial intelligence), medical technology/robotics, drug development
Risks include drug failures, regulatory changes, superior competing products
The Raiffeisen Health and Wellbeing ESG Equity Fund invests long-term and sustainably in the healthcare themes that the fund management considers most promising
What does the healthcare and wellbeing investment theme encompass?
Healthcare and wellbeing cover not only traditional healthcare, but also mental and physical wellbeing into old age. It involves preventive, curative and supportive measures that improve quality of life and life expectancy. The latter, namely longevity, is increasingly becoming a key challenge for healthcare systems and at the same time offers corresponding opportunities for companies that offer effective solutions.
The term wellbeing is defined differently in many places and naturally overlaps with the healthcare sector. The Raiffeisen Health and Wellbeing ESG Equity Fund includes companies engaged in fitness and healthy nutrition, occupational safety and accident prevention, and water supply and treatment.
What makes healthcare so interesting for investments?
Demographic change is driving a sustained increase in demand for healthcare services: older people need more healthcare services than younger people, and for a longer period (rising life expectancy).
In emerging markets, there is great growth potential due to improved access to healthcare and a growing middle class with strong purchasing power.
The industry benefits from high innovation and technological progress, e.g. telemedicine, robotics and the use of artificial intelligence (AI).
Healthcare investments are additionally supported by public funds and the UN's Sustainable Development Goals (SDG 3).
Despite fluctuations, healthcare stocks often offer good and sustained earnings growth over the long term and are less dependent on the economic cycle. They are therefore considered defensive investments and a good counterbalance to more cyclical sectors.
What is the best way to invest in health and wellbeing?
Technological change, the many challenges involved in developing and testing drugs, and the potential for significant regulatory intervention and shifts strongly suggest investing in a whole basket of equities from this sector rather than in individual stocks. An equity portfolio actively managed by industry experts is particularly suitable for this, as they can respond quickly to new developments, opportunities and challenges. This is exactly where Raiffeisen Health and Wellbeing ESG Shares come into play.
Investing in healthcare stocks
Raiffeisen-Health and Wellbeing-ESG-Aktien
To invest in the fund, you can make a one-off payment or use the regular fund savings option starting at just £50 per month. You can also combine both options. Your savings plan can be flexibly adjusted at any time.
The fund: Raiffeisen Health and Wellbeing ESG Equities
In addition to the fund management's many years of industry expertise, the fund scores with a sustainable investment concept based on ESG criteria. Greater responsibility and sustainability are called for in the healthcare sector as well. The Raiffeisen Health and Wellbeing ESG Equities fund is doing its part by enabling investors to invest in responsible companies in the health and wellbeing sector.
The fund focuses primarily on equities from the following sectors:
biotechnology,
pharmaceuticals,
medical technology and equipment,
life sciences and diagnostics,
health insurance and
health accessories.
Current market trends and outlook
With a few exceptions, healthcare stocks have been less in demand in recent years. However, they had previously performed very well for several years, ranking among the strongest stock market sectors. In the final quarter of 2025, however, the healthcare sector showed a strong recovery.
Is this a harbinger of a new phase of strength? That remains to be seen and cannot be reliably predicted! However, there are several factors that point in this direction, including good earnings growth potential, which is above the overall market average, while share valuations are currently more favourable than those of the market average.
Chinese healthcare stocks in the fast lane?
The fund management team at Raiffeisen Capital Management currently considers Chinese healthcare stocks, among others, to be promising. China is making rapid progress in drug development and biotechnology, as well as in medical robotics and medical devices. Unlike in the case of semiconductors and AI, for example, there is little confrontation between the US and China in this area, but rather good cooperation.
Artificial intelligence could also provide additional earnings potential for the healthcare industry, particularly in diagnosis and early detection, but also in coping with the high bureaucratic burden imposed by regulatory authorities. AI could be of great help in drug development, although expectations in this area appear to be significantly higher than the actual effects to date.
Risks exist in the pharmaceutical sector, among others, due to numerous patents expiring from 2028 onwards. Once this happens, other suppliers will also be allowed to manufacture and sell many protected drugs that currently still enjoy high profit margins. In return, this could increase the incentive for pharmaceutical companies to acquire new product pipelines by taking over promising and relatively inexpensive biotech companies, for example. This is one of the reasons why the fund management currently prefers the biotechnology sector to established pharmaceutical companies.
Conclusion: Healthcare equity investments
Equities in the health and wellbeing sector represent a highly interesting and promising, but of course also risky, area of investment. Therefore, good diversification (companies, business areas, medical trends) and specialist expertise are necessary for successful long-term investment in this sector.
The Raiffeisen Health and Wellbeing ESG Equities fund does just that and provides a sustainable investment solution for profiting from the megatrends in the healthcare sector. This is offset by the industry-specific risks of the healthcare sector mentioned above and the risks generally associated with equity investments. A long-term investment horizon of at least 10 years is recommended.