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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| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | 7Y Returns | 10Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDFC Defence Fund | Equity | Very High | 31.68 | 0.89 | 31.5% | 36.1% | -- | -- | -- | -- | ₹11,477 | Exit load of 1%, if redeemed within 1 year. |
Aditya Birla Sun Life PSU Equity Fund | Equity | Very High | 39.52 | 0.75 | 12.2% | 19.1% | 23.6% | -- | -- | -- | ₹6,072 | Exit load of 1% if redeemed within 30 days. |
SBI PSU Direct Plan-Growth | Equity | Very High | 37.66 | 0.96 | 8.4% | 19.4% | 23.7% | 20.9% | 13.8% | -- | ₹6,703 | Exit load of 0.50% if redeemed within 30 days. |
Motilal Oswal Nifty India Defence Index Fund | Equity | Very High | 12.75 | 0.55 | 26.2% | -- | -- | -- | -- | -- | ₹5,528 | Exit load of 1%, if redeemed within 15 days. |
HDFC Transportation and Logistics Fund | Equity | Very High | 20.31 | 1.09 | 9.8% | 24.9% | -- | -- | -- | -- | ₹2,115 | Exit load of 1%, if redeemed within 30 days. |
Motilal Oswal Active Momentum Fund | Equity | Very High | 14.84 | 3.22 | 30.7% | -- | -- | -- | -- | -- | ₹1,154 | Exit load of 1%, if redeemed within 90 days. |
ICICI Prudential Commodities Fund | Equity | Very High | 50.90 | 1.04 | 9.8% | 14.0% | 14.6% | -- | -- | -- | ₹4,276 | Exit load of 1% if redeemed within 3 months. |
ICICI Prudential BHARAT 22 FOF Direct-Growth | Equity | Very High | 33.06 | 0.12 | 4.1% | 14.3% | 21.5% | 19.2% | -- | 5 | ₹2,743 | - |
Aditya Birla Sun Life Nifty India Defence Index Fund | Equity | Very High | 13.92 | 0.45 | 26.2% | -- | -- | -- | -- | -- | ₹1,398 | Exit load of 0.05%, if redeemed within 30 days. |
Tata Ethical Direct Plan-Growth | Equity | Very High | 407.21 | 0.82 | -8.1% | 3.4% | 6.0% | 14.9% | 11.1% | -- | ₹3,860 | Exit load of 0.50% if redeemed within 90 days. |
Edelweiss Recently Listed IPO Fund | Equity | Very High | 36.19 | 1.14 | 22.0% | 17.4% | 12.5% | 22.0% | -- | -- | ₹1,230 | Exit load of 2% if redeemed within 6 months. |
SBI Automotive Opportunities Fund | Equity | Very High | 13.66 | 1.01 | 27.1% | -- | -- | -- | -- | -- | ₹6,348 | Exit load of 1%, if redeemed within 30 days. |
Groww Nifty EV & New Age Automotive ETF FoF Direct-Growth | Equity | Very High | 9.76 | 0.14 | 1.0% | -- | -- | -- | -- | -- | ₹183 | Exit load of 1%, if redeemed within 30 days. |
Invesco India PSU Equity Fund | Equity | Very High | 76.57 | 1.25 | 3.8% | 18.6% | 21.0% | 23.3% | 16.3% | -- | ₹1,447 | Exit load for units in excess of 10% of the investment, 1% will be charged for redemption within 1 year. See more |
SBI Energy Opportunities Fund | Equity | Very High | 11.22 | 0.93 | 5.9% | -- | -- | -- | -- | -- | ₹8,326 | Exit load of 1%, if redeemed within 30 days. |
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As an investor, it is essential to know whether a mutual fund is suitable for you before investing your money.
As an investor, there are key factors to keep in mind before investing in a thematic mutual fund.
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.
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.
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.
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.
There are several key benefits that investors can enjoy by 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 primarily equity funds and are taxed similarly to other equity funds.
Any dividend income is treated as income from other sources and taxed as per the investor’s applicable tax slab.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The HDFC Defence Fund comes under the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Defence Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹11,477Cr |
| 1Y Returns | 31.5% |
Fund Performance: The Aditya Birla Sun Life PSU Equity Fund has given 19.05% annualized returns in the past three years and 23.56% in the last 5 years. The Aditya Birla Sun Life PSU Equity 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 PSU Equity Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹6,072Cr |
| 1Y Returns | 12.2% |
Fund Performance: The SBI PSU Direct Plan-Growth has given 19.42% annualized returns in the past three years and 23.67% in the last 5 years. The SBI PSU Direct Plan-Growth comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI PSU Direct Plan-Growth via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹6,703Cr |
| 1Y Returns | 8.4% |
Fund Performance: The Motilal Oswal Nifty India Defence Index Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Nifty India Defence Index Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹5,528Cr |
| 1Y Returns | 26.2% |
Fund Performance: The HDFC Transportation and Logistics Fund comes under the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Transportation and Logistics Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹2,115Cr |
| 1Y Returns | 9.8% |
Fund Performance: The Motilal Oswal Active Momentum Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Active Momentum Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,154Cr |
| 1Y Returns | 30.7% |
Fund Performance: The ICICI Prudential Commodities Fund has given 13.98% annualized returns in the past three years and 14.58% in the last 5 years. The ICICI Prudential Commodities Fund comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Commodities Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,276Cr |
| 1Y Returns | 9.8% |
Fund Performance: The ICICI Prudential BHARAT 22 FOF Direct-Growth has given 14.35% annualized returns in the past three years and 21.46% in the last 5 years. The ICICI Prudential BHARAT 22 FOF Direct-Growth comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential BHARAT 22 FOF Direct-Growth via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,743Cr |
| 1Y Returns | 4.1% |
Fund Performance: The Aditya Birla Sun Life Nifty India Defence Index 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 Nifty India Defence Index Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,398Cr |
| 1Y Returns | 26.2% |
Fund Performance: The Tata Ethical Direct Plan-Growth has given 3.44% annualized returns in the past three years and 5.98% in the last 5 years. The Tata Ethical Direct Plan-Growth comes under the Equity category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata Ethical Direct Plan-Growth via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,860Cr |
| 1Y Returns | -8.1% |
Fund Performance: The Edelweiss Recently Listed IPO Fund has given 17.45% annualized returns in the past three years and 12.53% in the last 5 years. The Edelweiss Recently Listed IPO Fund comes under the Equity category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Recently Listed IPO Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹1,230Cr |
| 1Y Returns | 22.0% |
Fund Performance: The SBI Automotive Opportunities Fund comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Automotive Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹6,348Cr |
| 1Y Returns | 27.1% |
Fund Performance: The Groww Nifty EV & New Age Automotive ETF FoF Direct-Growth comes under the Equity category of Groww Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Groww Nifty EV & New Age Automotive ETF FoF Direct-Growth via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹183Cr |
| 1Y Returns | 1.0% |
Fund Performance: The Invesco India PSU Equity Fund has given 18.56% annualized returns in the past three years and 21% 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 ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,447Cr |
| 1Y Returns | 3.8% |
Fund Performance: The SBI Energy Opportunities Fund comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Energy Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,326Cr |
| 1Y Returns | 5.9% |
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