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Hot returns, cold reality: The truth about sectoral funds

We also explore why there's a gap between investment returns and investor gains

Sectoral funds: Hot returns, cold realityAI-generated image

Sectoral and thematic funds have been an investor favourite since 2024. These funds raked in a staggering Rs 1.83 lakh crore in net inflows-nearly 30 per cent of all net inflows across categories - on the back of very strong performance. But here's the twist: while the numbers on paper look spectacular, the returns investors earn tell a different story.

This article was originally published on April 19, 2025.


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