Sectoral and thematic funds can be a popular investment choice for those looking to capitalise on specific market segments or themes. These funds gain attention due to their ability to target industries or trends poised for growth, such as technology, healthcare, or sustainability. While they offer high growth potential, they can also come with increased risk. In this article, check the performance of sectoral and thematic funds in 2024, based on their 1-yr absolute returns.
| Name | AUM (₹ in crore) | Expense Ratio (%) | Absolute Returns – 1Y (%) |
| HDFC Defence Fund | 4,609.59 | 0.75 | 58.06 |
| HDFC Pharma and Healthcare Fund | 1,459.59 | 0.94 | 54.53 |
| Bandhan Infrastructure Fund | 1,798.34 | 0.82 | 52.34 |
| ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund | 5,044.63 | 1.09 | 50.35 |
| SBI Healthcare Opp Fund | 3,416.13 | 0.89 | 48.88 |
| UTI Healthcare Fund | 1,203.23 | 1.25 | 48.71 |
| DSP Healthcare Fund | 3,248.80 | 0.59 | 48.15 |
| Invesco India Infrastructure Fund | 1,609.31 | 0.71 | 47.37 |
| Franklin India Opportunities Fund | 5,622.81 | 0.49 | 47.21 |
| DSP India T.I.G.E.R Fund | 5,406.16 | 0.84 | 46.64 |
Note: The Sectoral and Thematic Funds list provided here is as of December 13, 2024. The funds are selected with an AUM of more than ₹1,000 crore and sorted based on the 1-year absolute returns.
HDFC Defence Fund is managed by HDFC Asset Management Company and was launched on June 2, 2023. The minimum investment required is ₹100. The fund tracks the Nifty India Defence Index TRI (Total Returns Index) as its benchmark. The 1year benchmark returns were 85.07%. As of September 30, 2024, the fund delivered 121.00% returns over 6 months and since its inception, it delivered 72.49%. As of December 12, 2024, its NAV is ₹22.86.
HDFC Asset Management Company manages the HDFC Pharma and Healthcare Fund and was launched on October 4, 2023. The minimum investment required is ₹100. The fund tracks the BSE Healthcare Index as its benchmark. The 1year benchmark returns were 44.55%. As of September 30, 2024, the fund delivered 64.09% returns over 6 months and since its inception, it delivered 55.85%. As of December 12, 2024, its NAV is ₹16.68.
Bandhan Infrastructure Fund is from Bandhan Mutual Fund and was launched on March 8, 2011. The minimum investment required is ₹1,000. The fund tracks the BSE India Infrastructure TRI as its benchmark. The 1-year benchmark CAGR was 75.66%. As of November 30, 2024, since its inception, it delivered 12.78%. As of December 12, 2024, its NAV is ₹54.14.
ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund is from ICICI Prudential Mutual Fund and was launched on July 13, 2018. The minimum investment required is ₹5,000. The fund tracks the BSE Healthcare TRI as its benchmark. The 1-year benchmark returns were 61.7%. As of September 30, 2024, since its inception, it delivered 23.88%. As of December 12, 2024, its NAV is ₹38.44.
SBI Mutual Fund manages the SBI Healthcare Opportunities Fund and was launched on July 5, 1999. The minimum investment required is ₹5,000. The fund tracks the BSE Healthcare Index as its benchmark. The 1year benchmark returns were 44.55%. As of September 30, 2024, since its inception, it delivered 17.05% returns. As of December 12, 2024, its NAV is ₹429.67.
Sectoral and thematic funds Assets Under Management (AUM) soared by 72.1%, from ₹1,72,819 crore in March 2023 to ₹2,97,358 crore in March 2024, and reached ₹4,61,710 crore by November 2024. Over the year, the category recorded a 94.8% increase in AUM and delivered strong returns, with all active funds posting at least 20% Year-to-Date (YTD) returns.
In FY 2024, sectoral/thematic funds led asset flows, drawing the highest inflows at over ₹46,000 crore. Investor interest was fueled by the launch of 45 new schemes, with business cycle and manufacturing themes gaining significant traction.
June 2024 marked a milestone with record-high inflows of ₹22,351 crore, driven by New Fund Offers (NFOs). This trend continued into August, with cumulative inflows of ₹83,235 crore, making sectoral/thematic funds the largest category in equity mutual funds.
Although inflows moderated slightly in September and October, the category maintained steady momentum, reflecting its strong investor appeal.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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