Thematic Funds: The Emerging Trend For Investors

Thematic funds are fast becoming a darling of all retail investors. To the uninitiated, they are a category of funds that invest in emerging opportunities across sectors. Their increasing popularity is driven to a large extent by the rising awareness of the common investor to spot the popular mega trends in investing. The trend is further buttressed by the products launched by the asset management companies, which are easy to understand, and resonate well with investors’ aspirations to capture the trends. Little wonder, the best thematic funds are the ones with the most visited pages among retail investors, as they park more of their disposable income into equities through mutual funds. Right Choice Thematic funds received net inflows of Rs 25,024 crore in the last one year, accounting for nearly 20 per cent of the total net inflows in equity funds, and the second highest after...