Why are investors shying away from sectoral and thematic mutual funds in 2025?

June 26, 2025

Sectoral and thematic equity mutual funds, popular in 2024, are experiencing reduced investor interest due to volatile returns and increased risk. Net inflows have significantly decreased from an average of ₹15,340 crore to ₹1,408 crore monthly. Investors, possibly mis-sold and unaware of the risks, are liquidating holdings after market sell-offs, prompting caution from analysts regarding retail participation.

More To Explore

Nifty rout hides a striking bull run: Smallcap universe gives 60 multibaggers since last Diwali

The stock market in India has encountered a rough patch, evidenced by the Nifty’s decline of over 11% since last Diwali. However, smallcap stocks have

October 30, 2026

ITC, RIL, HDFC Bank among top laggards as Nifty falls over 12% in 2026: Time to buy beaten-down stocks or wait for a recovery?

In 2026, the Nifty 50 index faced significant drops, with 34 out of 50 stocks plummeting by as much as 34%. Analysts believe that the

October 30, 2026

Advertiser Disclosure

Great-investor.com helps users across the globe to find out The latest news, Guides, and Info about finance and investments. Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data.

Disclaimer

It is our organization’s primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While great-investor.com has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by great-investor.com, nor shall it bias our reviews, analysis, and opinions. Please see our General Disclaimers for more information.

The information on this website does not constitute investment advice or a recommendation or a solicitation to engage in any investment activity. This website and its content are not intended for residents of the UAE, US, Canada, Australia, UK, Russia, North Korea, China, Japan, Hong Kong, Singapore and Iran.

Top10 International FZ LLE | 17th Floor, Creative Tower | 4422 | Fujairah | TRN: 100608946800003