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Sectoral / Thematic Mutual Funds

As the name suggests, Sectoral funds are open-ended equity schemes with a large corpus of investment in a specific sector. These funds concentrate their investment portfolio on equities of companies across different market capitalizations in a particular sector. Some of the most common sectors in India are energy, infrastructure, healthcare, utilities, etc. View More

Sectoral funds can deliver market-beating returns to investors in favorable times when the specific sector is expanding and performing well. These funds allow people to use their knowledge of the market and economy to reap profits by investing in the best-performing stocks in a particular sector.

However, as these funds focus the portfolio on one sector, there is a higher concentration risk. There is less room for diversification, meaning the risk associated with sectoral funds is high. The losses associated with the funds can be huge when the market sees a bearish trend and the sector does not perform well.

The Indian economy comprises many sectors like pharma, banking, technology, etc. Some of these sectors can perform extraordinarily well in the medium to long term. Sectoral funds are aimed at helping investors capitalize on these opportunities. Moreover, these funds invest in companies from small to mid and large capitalizations; the only requirement is that they should come from the same sector.

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List of Sectoral / Thematic Mutual Funds

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Who Should Invest In Sectoral Mutual Funds?

Sectoral funds can certainly be rewarding if investors can hit the right spot. However, due to a lack of diversification, they also have a high risk associated with them. So, one should only consider this type of fund after considering their financial goals, risk appetite, and investment horizon. Sectoral funds are an ideal investment option for: View More

Active and Informed Investors – Sectoral funds are unsuitable for beginners and inexperienced investors. Investments in these funds require timing the entry and exit right, which experienced traders struggle with. Active investors who are always on top of the latest news and happenings in the market can understand which sector is likely to perform well in the medium to long term. These funds are suitable for experienced investors with good knowledge of the sectors and insights based on thorough research.
Investors with a Good Risk Appetite – Sectoral funds invest in specific sectors and lack diversification which means they are high-risk schemes. Hence, investors comfortable with risky investments should only consider these funds.
Investors Interested in Tactical Allocation – Some sectors are cyclical, so investors willing to risk getting exposed to companies at the bottom of their cycle can invest in sectoral funds to make profits. You can choose a sector at the bottom of the cycle and hold the investment till it achieves its optimum performance before selling the funds to take profits.

Popular Sectoral / Thematic Mutual Funds

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 427
  • 3Y Return
  • 40.25%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 1,449
  • 3Y Return
  • 31.14%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 8,380
  • 3Y Return
  • 31.06%

  • Min SIP Investment Amt
  • ₹ 500
  • AUM (Cr.)
  • ₹ 5,817
  • 3Y Return
  • 30.02%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 3,082
  • 3Y Return
  • 30.01%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 1,903
  • 3Y Return
  • 28.84%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 5,643
  • 3Y Return
  • 28.07%

  • Min SIP Investment Amt
  • ₹ 200
  • AUM (Cr.)
  • ₹ 1,003
  • 3Y Return
  • 27.85%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 6,456
  • 3Y Return
  • 27.81%

  • Min SIP Investment Amt
  • ₹ 100
  • AUM (Cr.)
  • ₹ 685
  • 3Y Return
  • 26.70%

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