Thematic Funds Experience Decline in Performance
Thematic Schemes Plummet in Popularity Amid Shift in Investor Sentiment
Mumbai: A stark reversal has been observed in the mutual fund industry with thematic schemes experiencing a sharp decline in popularity, dropping to the bottom of equity fund inflows in the fiscal year 2026.
Thematic schemes, once a highly sought-after category, had been one of the most aggressively sold segments in the market for several years. However, their popularity has taken a hit, with investors increasingly turning away from such funds. This shift in investor sentiment marks a significant change in the market's narrative-driven bets.
| Category | Fiscal Year 2026 Equity Fund Inflows |
|---|---|
| Thematic Schemes | ₹X (decline in inflows) |
| Other Equity Schemes | ₹Y (increase in inflows) |
| Total Equity Schemes | ₹Z (total inflows) |
Read also: Groww AMC Secures Strategic Boost as SEBI Approves State Street Global Advisors' Minority Stake
The decline of thematic schemes at the bottom of equity fund inflows in FY26 highlights a shift in investor preferences, with more investors opting for other categories. As the market continues to evolve, it will be interesting to see how this trend develops and whether thematic schemes will regain their former popularity.
Investor Takeaway
Investors should be cautious of thematic funds' performance and consider diversifying their portfolios.
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