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AMFI data: Thematic mutual funds generate investor interest 

Mutual funds are lining up new fund offerings that focus on specific themes or a particular sector

November 11, 2020 / 07:59 PM IST

Thematic funds, which invest only in specific segments or themes, saw strong investor flows in October. This despite most equity fund categories seeing net outflows for the month.

The two thematic funds launched recently – Aditya Birla Sun Life Special Opportunities Fund (BSLSOF) and ICICI Prudential ESG Fund (IPEF) – collected around Rs 1,800 crore between them, according to data from industry body Association of Mutual Funds in India (AMFI).

The new fund offer (NFO) of BSLSOF collected Rs 409 crore, according to the fund house. Meanwhile, IPEF collected Rs 1,415 crore.

“Themes such as ESG (environmental, social and governance) are gaining popularity globally. With markets at new highs, the initial tendency of investors is to book profits. Or, they look for NFOs with a particular theme, rather than regular diversified equity schemes,” says Dhruv Mehta, chairman of Sapient Wealth Advisors and Brokers.