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Investors flock to thematic funds

Financial Express Ahmedabad

|

February 24, 2025

The Annual Report

- ANANYA GROVER

WITH 40% of last year's equity inflows and 22% of this January's, thematic and sectoral funds, considered among the riskiest, have become a favourite of investors. However, experts caution that many of these thematic stories may not play out the way they are being promoted.

Fund houses have been aggressively promoting thematic funds. In January, three of the 12 New Fund Offers (NFOs) accounted for over 60% of the total funds raised. In 2024, thematic funds made up around 67% of the total, with 52 of 239 NFOs falling into this category.

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