Over the past 12 months, over one-third of equity mutual fund net inflows have gone into sector and thematic funds. According to AMFI data, thematic and sector funds now represent the largest equity category, managing ₹4.4 lakh crore of investors' assets. So, why are investors drawn to thematic mutual funds? The answer lies in their strong wealth creation track record.
Riding Market Trends
Thematic funds focus on specific themes or industries, such as technology, healthcare, or energy, selecting companies positioned to benefit from these long-term trends. Unlike diversified funds that invest broadly, thematic funds target highgrowth opportunities, offering a way to participate in future-focused sectors.
Value Research data shows categories like PSU Thematic Funds (31% CAGR), Energy Thematic Funds (27% CAGR), and Dividend Yield Thematic Funds (26% CAGR) have delivered stellar returns over five years, demonstrating their potential to capitalise on economic trends.
This story is from the October 2024 edition of Outlook Money.
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This story is from the October 2024 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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