The sectoral and thematic fund category is now the largest active mutual fund (MF) space, with its assets under management (AUM) more than doubling in the last year. The category—considered to be the riskiest among all MF offerings as its fortunes are linked to one sector or a theme—has seen its AUM grow to Rs 4.21 trillion at the end of July from just Rs 2 trillion in July 2023.
The sharp surge in AUM, underpinned by robust collections from new fund launches and strong inflows into existing offerings, propelled the fund category to the top position on the AUM league table from 4th place a year ago.
Flexicap funds, which occupied the top position until June, are only closely behind.
Meanwhile, the midcap category, the second-largest AUM gainer in absolute terms in the last year, has surpassed largecap funds. Its AUM stood at Rs 3.8 trillion in July, as against Rs 3.6 trillion managed by largecap funds.
Smallcap funds remain in the fifth spot despite logging a 72 per cent AUM growth.
The last year has been marked by disproportionate inflows into a select few categories. Smallcap and midcap funds were raking in the lion’s share until some months back, but the momentum has shifted towards thematic funds in recent months on the back of a strong new fund offering (NFO) line-up.
First Published: Aug 19 2024 | 6:22 PM IST