Mutual Funds: 25% Annual Return in Sectoral Funds in 5 Years, IT, Infra, Healthcare, Energy Top Performing Thematic Funds

Sectoral or thematic funds have given 25% annual compounded returns over 5 years. IT, infrastructure, healthcare, energy and manufacturing are among the top performing funds. As per SEBI rules, thematic funds invest at least 80% in shares of any one sector. According to the Association of Mutual Funds in India (AMFI), there are currently 183 sectoral mutual fund schemes in the country. In September, it had invested Rs.13,255 crore and registered a total AUM of Rs.4.67 lakh crore. Which is the highest among all categories of equity funds. It includes Flexi Cap, ELSSS, Large Cap, Mid Cap and Small Cap funds. On the other hand, despite the concern expressed by SEBI about the increasing investment in this segment, investments of Rs.30,350 crore have been seen in mid-cap and small-cap mutual funds during April to September of the current financial year. Due to the excellent returns in this category, there is a continuous flow of investment in this category.

32,924 crore investment was recorded during the same period last year, according to AMFI. However, as the mid and small cap segment is volatile, it becomes necessary for investors to invest in it with caution. So far in 2025, midcap funds have seen inflows of Rs.14,756 crore, with a peak of Rs.3,130 crore seen during September. While Rs.15,586 crore has been invested in small cap funds.