Thematic mutual funds shine as investors chase alpha
The NSE Pharma and NSE 100 ESG indices have outperformed the benchmark Nifty 50 by 15 per cent and 4 per cent, respectively, since the March lows.
The top 10 thematic funds, eight of which belonged to either pharma, ESG or MNC subcategory, accounted for 40% of the total category’s assets under management (AUM).
Investors’ interest in thematic and sector funds is picking up amid the current market recovery even as the conventional fund categories continue to trail. Thematic funds primarily led by pharma, ESG (environment, social and governance) and MNC (multinational companies) funds received gross inflows of Rs 4,064 crore in October 2020, the highest for any equity fund category, data from AMFI shows. This was about a quarter of total gross equity