Sectoral/Thematic funds’ AUM grows 80% YoY in May, folios rise 56%. What is brewing?
AMCs have launched 34 thematic/sectoral funds since May 2023, which turns out to be an average of three schemes per month. From 128 such funds in May 2023, the tally went up to 162 in May 2022. During this period, the assets under management (AUM) shot up by 81% to Rs 3,37,280 crore in May 2024 from Rs 1,86,685 crore in the corresponding month of the last financial year.
Meanwhile, the number of folios has increased 56% to 2,05,67,662 from 1,32,09,299 in May 2023.
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Commenting on the trend, Sandeep Bagla, CEO, of TRUST Mutual Fund said that investors are keen to contribute to thematic funds as they give concentrated exposure to potential high-growth sectors. He also attributed sectoral/thematic funds' growing popularity to AMCs with strong marketing ability. They have been able to popularise themes like manufacturing and physical infrastructure among investors.
Echoing similar sentiment, Adhil Shetty, CEO, of Bankbazaar.com highlighted how thematic funds offer investors the opportunity to capitalise on specific economic trends or themes. «Investors are increasingly seeking ways to enhance returns by investing in sectors expected to outperform due to favourable macroeconomic trends. The ongoing economic reforms have spurred interest in certain themes. For example, digital economy, green energy, and infrastructure development are areas where the government has been proactive, attracting investors looking to
