Thematics top MF menu, but investors are losing their fancy

Lukewarm interest isn’t just restricted to NFOs

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inflowssurge by 80%, 70%, and 51%, respectivel

The outcome: Thematicand sectoral funds’ contribution to total equity inflows shrank from a commanding 40% toa mere 15% ina year.

“The moment the markets turn volatile, especially with a negative bias, investors turn cautiousand they eitherstop or redeem when they see a slight dipin theirinvestments. Some investors even reroute their redemption proceeds from categorieslike thematic, sectoral, tolarge-cap, flexi-cap,andmulti-asset funds,” said Manmeet Singh Khurana, distributor, founderat Wealth Dopes, alsoa certified financial planner.