Thematic Mutual Funds
Thematic mutual funds are a type of investment fund that focuses on specific themes or trends believed to have long-term growth potential. Unlike sectoral funds that invest in a particular industry, thematic funds can span multiple sectors and industries that are connected by a common theme.
Best Thematic Mutual Funds to Invest
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Quant ESG Equity Fund Direct Growth▲ 22.56%AUM ₹309 Cr •
Expense 0.79%
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SBI Consumption Opportunities Fund Direct Plan Growth▲ 20.51%AUM ₹3015 Cr •
Expense 0.9%
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Nippon India Consumption Fund - Direct Plan - Growth Plan▲ 19.66%AUM ₹2073 Cr •
Expense 0.66%
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Tata India Consumer Fund Direct Growth▲ 18.71%AUM ₹2375 Cr •
Expense 0.74%
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Mahindra Manulife Consumption Fund Direct Growth▲ 18.54%AUM ₹397 Cr •
Expense 0.66%
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Canara Robeco Consumer Trends Fund Direct Plan Growth▲ 16.78%AUM ₹1747 Cr •
Expense 0.84%
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Baroda BNP Paribas India Consumption Direct Growth▲ 16.71%AUM ₹1447 Cr •
Expense 0.61%
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ICICI Prudential ESG Exclusionary Strategy Fund Direct Growth▲ 16.61%AUM ₹1557 Cr •
Expense 1.01%
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Quantum ESG Best In Class Strategy Fund Direct Growth▲ 11.64%AUM ₹88 Cr •
Expense 0.85%
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Kotak ESG Exclusionary Strategy Fund Direct Growth▲ 11.53%AUM ₹943 Cr •
Expense 0.81%
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Invesco India ESG Integration Stategy Fund Direct Growth▲ 11.13%AUM ₹519 Cr •
Expense 1%
- SBI ESG Exclusionary Strategy Fund Direct Growth▲ 10.86%
AUM ₹5750 Cr •
Expense 1.31%
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Mirae Asset Nifty 100 ESG Sector Leaders Fund of Fund Direct Growth▲ 9.33%AUM ₹101 Cr •
Expense 0.46%
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Aditya Birla Sun Life ESG Integration Strategy Fund Direct Growth▲ 8.64%AUM ₹679 Cr •
Expense 1.32%
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Axis ESG Integration Strategy Fund Direct Growth▲ 8.28%AUM ₹1333 Cr •
Expense 1.27%
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HDFC Non-Cyclical Consumer Fund Direct Growth--AUM ₹884 Cr •
Expense 1.09%
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HSBC Consumption Fund Direct Growth--AUM ₹1562 Cr •
Expense 0.72%
- Kotak Consumption Fund Direct Growth--
AUM ₹1071 Cr •
Expense 0.55%
- SBI Energy Opportunities Fund Direct Growth--
AUM ₹10890 Cr •
Expense 0.59%
- ICICI Prudential Energy Opportunities Fund Direct Growth--
AUM ₹9958 Cr •
Expense 0.44%
Start SIP in Thematic Mutual Funds as low as Rs. 50
Daily SIP | Weekly SIP | Monthly SIP
Who Should Invest in Thematic Funds?
Recommended for seasoned investors who have a solid understanding of market trends and the specific themes they are investing in.
Individuals seeking exposure to high-growth sectors may consider thematic funds.
Investors who wish to align their investments with personal values or social causes may find thematic funds appealing.
Why Should You Invest in Thematic Funds?
Potential for Higher Returns
Thematic funds have the potential to generate substantial returns, especially when the chosen theme experiences robust growth.
Alignment with Personal Beliefs
These mutual funds allow investors to align their portfolios with their beliefs and outlook on the future.
Diversification Benefits
While thematic funds have a narrower focus compared to traditional diversified funds, they can still provide diversification benefits.
Risks Involved in Thematic Funds
Risk of Total Loss
Thematic funds can lead to a complete loss of the principal investment. Since these funds focus on specific themes or sector.
Long-Term Performance Uncertainty
Some themes may take longer than expected to realize their potential.
Higher Expense Ratios
The management fees associated with thematic funds can be higher than those of traditional funds.
Taxation in Thematic Funds
If you redeem your investment in a thematic fund within 12 months from the date of purchase, the gains are considered short-term capital gains (STCG).
While staying invested in a thematic fund for more than 12 months, the gains are categorized as long-term capital gains (LTCG).
Dividends received from thematic funds are taxed in the hands of the recipient at their applicable income tax slab rates.
Frequently Asked Questions
A thematic fund invests in companies tied to a specific theme or trend, such as technology or sustainability.
Yes, thematic funds can be riskier due to their focus on a particular theme, which may be subject to market volatility.
Thematic funds invest based on broader themes, while sectoral funds focus specifically on one industry sector.
The best sectoral fund depends on market conditions and your investment goals; it's advisable to consult a financial expert.
The best thematic fund varies based on market trends and individual preferences; thorough research or advice from a financial advisor is recommended to choose the right one.
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