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Best Thematic Mutual Funds

A thematic mutual fund is typically an equity fund that invests across industries or securities to benefit from a particular theme. These funds allocate 85% of funds to sectors or industries of a particular theme.

Thematic mutual funds use a top-down approach, meaning they identify the broader theme first before selecting individual companies or securities that align with it.

A thematic mutual fund focuses on a particular theme based on factors such as economic conditions, market trends, regulatory environment, and technological developments. The fund’s investment strategy focuses on sectors and industries aligned with the theme and capable of generating returns.

For example, a thematic mutual fund focused on exports may invest in companies across numerous sectors and industries involved in exporting goods and services.

It is essential to understand that a thematic mutual fund differs from a sectoral fund. A sectoral fund focuses on a specific sector, such as infrastructure or automobiles, while a thematic mutual fund takes a broader approach, investing across several sectors and industries.

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List of Thematic Mutual Funds in India

Fund NameCategoryRiskNAVExpense Ratio1Y Returns3Y Returns5Y ReturnsRatingFund Size (in Cr)Exit Load
Mirae Asset Great Consumer Fund
EquityVery High114.430.413.9%18.1%22.8%4₹4,632
Exit load of 1% if redeemed within 1 year
ICICI Prudential Bharat Consumption Fund
EquityHigh27.801.12.2%17.5%21.5%4₹3,183
Exit load of 1% if redeemed within 3 months.
Nippon India Consumption Fund
EquityVery High225.640.553.3%15.9%24.2%4₹2,801
Exit load of 1% if redeemed within 1 month.
SBI Consumption Opportunities Fund
EquityVery High353.640.92-5.4%14.7%25.0%4₹3,180
Exit load of 0.10% if redeemed within 30 days.
Tata India Consumer Fund
EquityVery High52.690.712.1%18.8%21.4%3₹2,530
Exit load of 0.25% if redeemed within 30 days.
Baroda BNP Paribas India Consumption Fund
EquityVery High35.630.643.5%16.8%20.7%3₹1,530
Exit Load for units in excess of 10% of the investment,1% will be charged for redemption within 12 months.
See more
Canara Robeco Consumer Trends Fund
EquityVery High128.920.793.9%16.7%21.5%3₹1,928
Exit load of 1% if redeemed within 1 year
Sundaram Consumption Fund
EquityVery High109.861.314.2%16.6%19.9%2₹1,589
Exit load of 0.5% if redeemed within 30 days
Mahindra Manulife Consumption Fund
EquityVery High25.940.632.2%16.6%20.6%2₹540
Exit load of 1%, if redeemed within 3 months.
Aditya Birla Sun Life Consumption Direct Fund
EquityVery High251.330.764.3%15.2%20.5%2₹6,362
Exit load of 1%, if redeemed within 30 days.
Axis Multi Factor Passive FoF Fund
EquityVery High15.630.14-0.0%12.9%NA2₹33
Exit load of 1% if redeemed within 15 days.
UTI India Consumer Fund
EquityVery High64.161.573.2%14.2%17.7%1₹734
Exit load of 1% if redeemed within 30 days.
Franklin India Opportunities Direct Fund
EquityVery High287.910.515.2%30.7%27.9%--₹7,766
Exit load of 1% if redeemed within 1 year
Invesco India PSU Equity Fund
EquityVery High78.590.933.9%29.9%32.1%--₹1,465
Exit load for units in excess of 10% of the investment, 1% will be charged for redemption within 1 year.
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SBI PSU Fund
EquityVery High37.090.854.1%29.8%33.8%--₹5,521
Exit load of 0.50% if redeemed within 30 days.
View All

Who Should Invest in Thematic Mutual Funds?

As an investor, it is essential to know whether a mutual fund is suitable for you before investing your money.

  • Investors can significantly benefit from a thematic fund in the long run. Investors with a long-term investment horizon of 5-7 years should consider a thematic mutual fund.
  • Being primarily equity funds, thematic mutual funds carry higher risk, making them suitable for investors with a moderate to high risk tolerance.
  • A thematic mutual fund is more suitable for investors with market experience and a strong understanding of the theme.

Factors to Consider Before Investing in a Thematic Mutual Fund

As an investor, there are key factors to keep in mind before investing in a thematic mutual fund.

Investment Objective

The primary factor to consider before making an investment decision is your investment objective. An investor should know the objective of their investment, such as long-term wealth generation, creating emergency funds, or fixed income. Assessing the various factors can help you determine your investment horizon and develop an investment plan.

Risk Appetite

Thematic mutual funds are mainly equity funds that can experience significant short-term volatility. Moreover, the performance of certain thematic funds can be affected by the economic and regulatory environment, making them suitable for investors willing to take on risk.

Theme Specific Information

Before investing in a thematic mutual fund, an investor should carefully assess the theme that they aim to invest in. Understand the opportunities and risks associated with investing in a particular theme. Study and research the sectors and industries involved in the theme.

Fund Details and Performance

While investing in a thematic mutual fund, it is important to research and compare the fund’s details. Know the associated costs, fees, and charges of the fund. It is also advisable to understand the fund’s investment strategy and asset allocation. Compare the information with peers and a benchmark index to pick the best investment option.

Major Advantages of Investing in Thematic Mutual Funds

There are several key benefits that investors can enjoy by investing in thematic mutual funds.

  • Thematic mutual funds can help investors build a diverse portfolio by investing across several industries and sectors. This diversification also prevents overconcentration and helps in mitigating risks.
  • Thematic mutual funds can be a viable option to generate long-term wealth. Themes evolve over several years, allowing investors to compound their wealth.
  • By identifying and investing in a theme early on, investors can tap into its growth story from the start, potentially generating significantly higher returns.

Risks Involved While Investing in Thematic Mutual Funds

Investors should be aware of the risks and considerations while making an investment in thematic mutual funds:

  • Thematic mutual funds are mainly equity funds, making them susceptible to market risks. The value of equity investments can be volatile in the short term.
  • The regulatory environment, geopolitical risks, interest rates, and government policies can significantly impact a thematic mutual fund’s performance.
  • The performance of a theme may not pan out as expected due to industry or sector-specific risks.
  • Thematic funds require some experience and knowledge of the theme you are investing in, making them less suitable for beginner investors.

Taxation of Thematic Mutual Funds

Thematic mutual funds are primarily equity funds and are taxed similarly to other equity funds.

  • If the units are sold within one year of making the investment, short-term capital gains tax is applicable at 15%.
  • If the units are sold after one year and the gains exceed the threshold limit of ₹1 lakh, the gains are subject to long-term capital gains tax of 10% without indexation benefit.

Any dividend income is treated as income from other sources and taxed as per the investor’s applicable tax slab.

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

Mirae Asset Great Consumer Fund Direct Growth

Fund Performance: The Mirae Asset Great Consumer Fund has given 18.09% annualized returns in the past three years and 22.77% in the last 5 years. The Mirae Asset Great Consumer Fund comes under the Equity category of Mirae Asset Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Great Consumer Fund via lump sum is ₹5,000 and via SIP is ₹99.

Min Investment Amt₹5,000
AUM₹4,632Cr
1Y Returns3.9%

ICICI Prudential Bharat Consumption Fund Direct Growth

Fund Performance: The ICICI Prudential Bharat Consumption Fund has given 17.5% annualized returns in the past three years and 21.5% in the last 5 years. The ICICI Prudential Bharat Consumption Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Bharat Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹3,183Cr
1Y Returns2.2%

Nippon India Consumption Fund Direct Growth

Fund Performance: The Nippon India Consumption Fund has given 15.87% annualized returns in the past three years and 24.21% in the last 5 years. The Nippon India Consumption Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹2,801Cr
1Y Returns3.3%

SBI Consumption Opportunities Fund Direct Growth

Fund Performance: The SBI Consumption Opportunities Fund has given 14.73% annualized returns in the past three years and 24.97% in the last 5 years. The SBI Consumption Opportunities Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Consumption Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹3,180Cr
1Y Returns-5.4%

Tata India Consumer Fund Direct Growth

Fund Performance: The Tata India Consumer Fund has given 18.8% annualized returns in the past three years and 21.39% in the last 5 years. The Tata India Consumer Fund comes under the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata India Consumer Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹2,530Cr
1Y Returns2.1%

Baroda BNP Paribas India Consumption Fund Direct Growth

Fund Performance: The Baroda BNP Paribas India Consumption Fund has given 16.79% annualized returns in the past three years and 20.7% in the last 5 years. The Baroda BNP Paribas India Consumption Fund comes under the Equity category of BNP Paribas Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas India Consumption Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,530Cr
1Y Returns3.5%

Canara Robeco Consumer Trends Fund Direct Growth

Fund Performance: The Canara Robeco Consumer Trends Fund has given 16.74% annualized returns in the past three years and 21.49% in the last 5 years. The Canara Robeco Consumer Trends Fund comes under the Equity category of Canara Robeco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Consumer Trends Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹1,928Cr
1Y Returns3.9%

Sundaram Consumption Fund Direct Growth

Fund Performance: The Sundaram Consumption Fund has given 16.63% annualized returns in the past three years and 19.95% in the last 5 years. The Sundaram Consumption Fund comes under the Equity category of Sundaram Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Sundaram Consumption Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹1,589Cr
1Y Returns4.2%

Mahindra Manulife Consumption Fund Direct Growth

Fund Performance: The Mahindra Manulife Consumption Fund has given 16.57% annualized returns in the past three years and 20.55% in the last 5 years. The Mahindra Manulife Consumption Fund comes under the Equity category of Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Consumption Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹540Cr
1Y Returns2.2%

Aditya Birla Sun Life Consumption Direct Fund Growth

Fund Performance: The Aditya Birla Sun Life Consumption Direct Fund has given 15.24% annualized returns in the past three years and 20.54% in the last 5 years. The Aditya Birla Sun Life Consumption Direct Fund comes under the Equity category of Aditya Birla Sun Life Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Consumption Direct Fund via lump sum is ₹1,000 and via SIP is ₹100.

Min Investment Amt₹1,000
AUM₹6,362Cr
1Y Returns4.3%

Axis Multi Factor Passive FoF Direct Growth

Fund Performance: The Axis Multi Factor Passive FoF Fund comes under the Equity category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Multi Factor Passive FoF Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹33Cr
1Y Returns-0.0%

UTI India Consumer Fund Direct Growth

Fund Performance: The UTI India Consumer Fund has given 14.23% annualized returns in the past three years and 17.74% in the last 5 years. The UTI India Consumer Fund comes under the Equity category of UTI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in UTI India Consumer Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹734Cr
1Y Returns3.2%

Franklin India Opportunities Direct Fund Growth

Fund Performance: The Franklin India Opportunities Direct Fund has given 30.67% annualized returns in the past three years and 27.92% in the last 5 years. The Franklin India Opportunities Direct Fund comes under the Equity category of Franklin Templeton Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Opportunities Direct Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹7,766Cr
1Y Returns5.2%

Invesco India PSU Equity Fund Direct Growth

Fund Performance: The Invesco India PSU Equity Fund has given 29.92% annualized returns in the past three years and 32.12% in the last 5 years. The Invesco India PSU Equity Fund comes under the Equity category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India PSU Equity Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹1,465Cr
1Y Returns3.9%

SBI PSU Direct Plan Growth

Fund Performance: The SBI PSU Fund has given 29.75% annualized returns in the past three years and 33.82% in the last 5 years. The SBI PSU Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI PSU Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹5,521Cr
1Y Returns4.1%

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