Investor appetite for sectoral and thematic mutual funds weakened sharply in May, with the category witnessing one of the steepest declines in inflows among equity-oriented schemes. According to the latest AMFI data, sectoral and thematic funds attracted net inflows of just Rs 647 crore in May, registering a decline of 67% from the previous month.
This slowdown in broader equity fund flows and steepest fall in sectoral and thematic funds is raising questions about whether investors are becoming more cautious about concentrated sectoral bets, shifting towards diversified categories, or simply waiting for clearer market direction.
