Sectoral/Thematic Mutual Funds in India
Updated June 2026 · 273 active funds · data from AMFI NAVs · benchmark: NIFTY 500 TRI
Sectoral and Thematic funds invest at least 80% in equity concentrated around a single sector (such as banking, IT, pharma or infrastructure) or a broader theme (such as consumption, manufacturing, ESG or a business cycle). By design they abandon diversification across the economy, instead making a focused bet that one slice of the market will outperform. This is the largest equity sub-category by fund count on FindMF (273 active funds) and also the most varied: a banking fund and an ESG fund share a SEBI label but behave nothing alike. Because returns hinge on the fortunes of one sector or theme, these funds are the most volatile and cyclical equity products - they can lead the market for a stretch, then lag badly when the theme falls out of favour, and timing entry and exit is notoriously hard. They suit investors with a specific, informed conviction, used as a small satellite rather than a core. The default benchmark on FindMF is the NIFTY 500 TRI, though a broad index is only a rough yardstick for a concentrated sector fund. FindMF computes trailing returns, volatility, Sharpe, drawdown and alpha/beta from AMFI daily NAVs under a disclosed methodology, helping you see each fund's true cyclicality.
Who it suits: Investors with a specific, well-researched conviction in a sector or theme who use these as a small, satellite allocation.
70% of the 194 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | Nippon India Taiwan Equity Fund Nippon India | +189.19% | +62.31% | - | 0.88 | -44.8% | 0.87% | ₹490 Cr |
| 2 | HDFC Defence Fund HDFC | +7.66% | +40.66% | - | 1.07 | -34.5% | 0.89% | ₹7.7K Cr |
| 3 | SBI PSU Fund SBI | +5.42% | +29.53% | +23.36% | 0.92 | -24.1% | 0.91% | ₹6.1K Cr |
| 4 | ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund ICICI Prudential | +5.18% | +27.51% | +15.99% | 0.69 | -18.1% | 1.32% | ₹6.6K Cr |
| 5 | UTI Healthcare Fund UTI | +10.39% | +27.45% | +14.93% | 0.59 | -21.1% | 1.29% | ₹1.1K Cr |
| 6 | LIC MF Infrastructure Fund LIC | +4.15% | +27.38% | +23.92% | 0.99 | -26.7% | 0.82% | ₹969 Cr |
| 7 | Aditya Birla Sun Life PSU Equity Fund Aditya Birla Sun Life | +5.65% | +26.76% | +23.53% | 0.93 | -26.8% | 0.59% | ₹5.7K Cr |
| 8 | Mirae Asset Healthcare Fund Mirae Asset | +12.52% | +26.49% | +15.53% | 0.63 | -18.5% | 0.52% | ₹2.8K Cr |
| 9 | SBI HEALTHCARE OPPORTUNITIES FUND SBI | +11.17% | +26.31% | +16.49% | 0.72 | -18.2% | 1.04% | ₹4.0K Cr |
| 10 | DSP India T.I.G.E.R. Fund DSP | +11.28% | +25.35% | +23.63% | 1.04 | -25.8% | 1.28% | ₹5.3K Cr |
| 11 | ICICI Prudential PSU Equity Fund ICICI Prudential | +2.70% | +25.16% | - | 0.96 | -23.0% | 1.08% | ₹1.9K Cr |
| 12 | Invesco India PSU Equity Fund Invesco | -1.85% | +25.11% | +22.26% | 0.85 | -29.8% | 0.93% | ₹1.5K Cr |
| 13 | Aditya Birla Sun Life Pharma and Healthcare Fund Aditya Birla Sun Life | +11.40% | +25.08% | +13.83% | 0.54 | -20.5% | 1.02% | ₹843 Cr |
| 14 | BANK OF INDIA Manufacturing & Infrastructure Fund Bank of India | +11.23% | +24.58% | +21.54% | 0.98 | -24.2% | 0.77% | ₹669 Cr |
| 15 | DSP Healthcare Fund DSP | +9.39% | +24.23% | +15.62% | 0.61 | -21.3% | 2.00% | ₹3.0K Cr |
| 16 | Tata India Pharma & Healthcare Fund Tata | +5.51% | +23.81% | +14.48% | 0.58 | -17.3% | 1.11% | ₹1.3K Cr |
| 17 | DSP Natural Resources and New Energy Fund DSP | +18.35% | +23.63% | +16.66% | 0.74 | -24.3% | 0.96% | ₹1.8K Cr |
| 18 | Nippon India Power & Infra Fund Nippon India | +5.42% | +23.57% | +22.71% | 1.00 | -25.6% | 1.11% | ₹6.9K Cr |
| 19 | Franklin India Opportunities Fund Franklin Templeton | -1.20% | +23.17% | +18.98% | 0.84 | -24.3% | 0.91% | ₹8.2K Cr |
| 20 | Nippon India Pharma Fund Nippon India | +5.06% | +23.06% | +13.24% | 0.54 | -19.5% | 0.93% | ₹8.1K Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Sectoral/Thematic funds taxed?
These funds hold at least 80% in Indian equity, so they are equity-oriented: short-term gains (units held under 12 months) are taxed at 20%, and long-term gains (12 months or more) at 12.5% on the amount above Rs 1.25 lakh per financial year.
Why are Sectoral and Thematic funds considered high-risk?
Concentrating in one sector or theme removes diversification, so the fund swings with that area's cycle - sharp gains when in favour, deep drawdowns when out of favour. FindMF's volatility and maximum-drawdown metrics, computed from AMFI NAVs, show just how cyclical each fund has been.
What is a reasonable expense ratio, and how should I compare these funds?
TERs vary widely across this large, diverse group. Critically, compare only funds within the same sector or theme - a pharma fund's record says nothing about an IT fund. On FindMF, line up like-for-like funds on returns, drawdown, Sharpe and TER, all computed from AMFI NAVs. Remember the NIFTY 500 TRI benchmark is a broad-market proxy, not a true sector index.
Should these funds be a core holding?
Most investors treat sectoral and thematic funds as small satellite positions rather than a core, because a single bad cycle can hurt heavily and timing is difficult. FindMF does not give personal advice, but its drawdown and long-run return data help you size the risk before committing.