Thematic Funds Details: If you are also skeptical about investment and want your money to be safe with good returns, then thematic mutual fund can be a good option. The biggest feature of these funds is that they invest in companies according to a particular trend or theme. This not only increases returns but also reduces risk.

Thematic funds invest money in those companies which are to a particular trend or theme (eg FMCG, auto sector, manufacturing). They are not limited to just one industry, but diversify your portfolio by investing in companies from different sectors to the chosen theme. This is why the risk of investment is distributed.

bumper returns

Experts say that the most important thing in thematic investment is to make an entry and exit strategy at the right time. For example, ICICI Prudential Thematic Advantage Fund (FOF) has given returns of 8.23% in the last one year till July 30, 2025. At the same time, compound annual growth (CAGR) of 20.68% in three years and 26.08% in five years has been recorded.

Why invest?

Direct stake in trending sectors. Benefits of portfolio diversification. Professional and disciplined fund management. Potential for better long term returns.

You can invest with strategy

This investor takes risks, but less than other funds. Actually, investment remains divided among many companies. If you are also looking for a new investment option, then you can invest in thematic mutual funds with a strategy by understanding the market trends. This will assure your money of long term growth as well as security.

How was the performance in 12 months?

Mutual fund houses keep launching different types of schemes. One of these is also thematic fund. Mutual fund houses are launching new thematic funds, but the interest towards them is increasing well among investors. However, according to some reports, capital raised from thematic new fund offers (NFOs) in the 12 months to October 2025 declined by 52% compared to the previous year, to about Rs 33,712 crore.