The present invention discloses improved homoeopathic compositions having faster action and targeted drug delivery owing to use of liposomes as a medium in preparing homeopathic compositions, than alcohol alone. The liposomes act as immune-potentiators and carriers of medicinal factors and can be easily incorporated in a wide variety of homoeopathic oral compositions, for human and veterinary use. At high potency, the therapeutic dose comprises not only the original drug in nano- concentrations, but also liposomes, sugar or alcohol. Apart from the active ingredient, the diluent medium also acts as the therapeutic agent. Apart from use of liposomes for enhancing speed of therapeutic action of homeopathic compositions, the invention also discloses novel use of alloxan in the improved compositions (comprising active agent, liposomes and alcohol) for treatment of diabetes, polycystic ovary and osteoporosis.