To achieve magnetic field-assisted drug delivery, magnetic nanocarriers have to be designed. In this paper, we report the synthesis of holmium ferrite nanoparticles. The nanoparticles are coated with cyclodextrin-polyethylene glycol conjugate. The nanoparticles are characterized using X-ray diffraction, EDX, and XPS. The nanoparticles are of the size range suitable for effective drug delivery. The holmium ferrite nanoparticles are superparamagnetic. An anticancer drug, camptothecin, is loaded on the nanocarrier with an adsorption percentage of 92%. The efficacy of the anticancer drug is enhanced on employing the magnetic nanocarrier.