 "investors, fund, sectoral fund")
Investor interest in sectoral and thematic funds — the largest and riskiest equity mutual fund (MF) category — has waned in recent months following a nearly year-long period of strong inflows.
In calendar year 2025 so far, monthly inflows have been only a fraction of the investments seen in the previous year. These funds have garnered ₹19,000 crore during the January–May 2025 period, just 13 per cent of the ₹1.5 trillion inflows recorded in 2024.
According to MF distributors, the slump in inflows is due to two factors, both stemming from the equity market correction after September 2024. First, new
