New Delhi: Thematic or sectoral funds have become favourites of retail investors off-late. This particular category of mutual fund has attracted maximum inflows in at least last one year as compared to all other categories of equity mutual funds categories. Mutual fund expert Dr. Ravi R Kumar, who is CEO of Know The Pulse shared ways in which small investors should invest in such funds. He said, “Thematic funds are focused funds and assess the selective sector. It also helps us understand our economy in better ways. Like any other mutual funds, we have option to invest in thematic either by systematic approach or lump sum approach. If one sees a great downfall in the industry can go for lump sum or can average it out by allocating equal funds as installments.”
Thematic funds bite largest share of the MF Industry Pie
As of May 2024, thematic funds have the highest chunk of AUM of the entire mutual funds in the equity category. The share of AUM of sectoral funds in that of equity funds is 13 per cent.
After Covid-19 pandemic saga, new retail investors which came into the market, have been so bullish on equities that, investment in equity mutual funds has been positive continuously since March 2021. Since then, not a single month has gone by where net-outflow of funds from equity mutual funds was witnessed.
AMCs have launched highest number of equity funds in thematic category
Sensing strong retail participation in sectoral funds, Asset Management Companies (AMCs) have also launched highest number of schemes in thematic mutual funds category than in any other equity fund category as of May 2024. So far, there are total number of 162 thematic mutual fund schemes launched in the industry. Total number of equity schemes currently stand at 443. Thematic fund schemes constitute 36 per cent of total equity mutual fund schemes in the country.
Highest number of equity folios in thematic category
Moreover, retail investors too have opened highest number of folios in thematic funds only. As of May 2024 there are total of 2.05 crore folios in sectoral funds. This constitutes 16 per cent of total number of equity folios in the industry. There were total of 12.89 crore folios in the equity mutual fund category, as of May 2024.
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As of May 2024, retail investors have opened highest number of mutual fund folios of thematic funds category as compared to all other categories of equity funds. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
