Healthcare-focused thematic mutual funds attracted net inflows of ₹1,129 crore in September, the highest among the thematic equity categories tracked in Vallum Capital Advisors’ monthly report, even as the category’s median return declined 4% during the month.
The inflows increased from ₹984 crore in August, according to Morningstar data cited in the report.
Healthcare was also the worst-performing domestic thematic equity category in September among those listed in the report, while technology funds recorded the strongest monthly return.
The divergence between flows and returns highlights how investor allocations and the performance of underlying stocks can move in different directions over a month.
Healthcare leads thematic fund inflows
Healthcare-focused thematic funds had assets under management (AUM) of ₹43,388 crore as of the report’s October 16 data cut-off. The category recorded a 4% decline in September, while its year-to-date return stood at 12.6%, according to the report.
The September inflow figure indicates that net investments exceeded redemptions during the month. However, the data do not establish why investors continued to allocate money to healthcare-focused funds despite the monthly decline.
Technology funds gain, but see outflows
Technology-focused thematic funds recorded a median return of 2.8% in September, the strongest among the domestic thematic categories covered in the report. However, the category saw net outflows of ₹118 crore, compared with outflows of ₹535 crore in August.
The category had AUM of ₹42,259 crore. Despite the September gain, its year-to-date return remained negative at 13.9%, according to the report.
Vallum Capital attributed the sector’s monthly performance partly to results from TCS and HCLTech and renewed attention to artificial intelligence-related revenue. The report’s figures show that the improvement in monthly returns coincided with lower net outflows, although they do not establish a direct causal relationship.
Auto funds continue to attract money despite losses
Auto-focused thematic funds recorded a median decline of 4.4% in September, while net inflows fell to ₹81 crore from ₹241 crore in August.
The category had AUM of ₹7,792 crore. Its year-to-date return was negative 6.6%, according to the report.
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