Thematic Fund Or Sectoral Fund, Which Fund Suits You?

A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.

- Kalpesh Dave

What is a Thematic Fund?

These themes could include global trends like technology, environmental sustainability, or local opportunities such as infrastructure development. The key aspect of a thematic fund is that it targets multiple sectors related to a single theme, offering investors exposure to companies that are expected to benefit from that theme in the future.

Difference Between Thematic and Sectoral Funds

While both thematic and sectoral funds focus on specific areas, they differ in terms of investment scope:

• Thematic Fund: Invests across multiple sectors that align with a particular theme. For example, a “green energy” thematic fund may invest in companies involved in renewable energy, electric vehicles, and energy storage. The focus is broader, aiming to capitalize on a long-term trend that cuts across different industries.