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What is Best Thematic Mutual Fund in India 2023

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14 Jul 2023

As "thematic" implies, thematic funds invest in a particular theme, selecting industries and businesses associated with a specific concept or theme. Investing in businesses that concentrate on a particular theme could be lucrative if economic trends indicate an increasing interest. In this post, we learn about Thematic Mutual Funds and a few of the best-performing Thematic Mutual Funds. 

What Are Thematic Mutual Funds?

So these are equity mutual funds that invest in securities associated with a particular theme. They are more diversified than sectoral funds because they invest in companies and industries that share a common concept. For example, an infrastructure theme fund will invest in the cement, power, and steel sectors.

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4 Top Performing Thematic Mutual Funds

Here are the top-performing Thematic Mutual Funds:

1. SBI Magnum COMMA Fund Direct-Growth

The thematic mutual fund from SBI Mutual Fund has been active in the market for 10 years and five months. As of March 31, 2023, the fund has Rs 426 Crores in assets under management (AUM). 

  • The expense ratio is 2.03%.
  • The one-year returns for SBI Magnum COMMA Fund Direct-Growth have been 5.75%. Since the beginning, it has generated average annual returns of 12.21%.
  • Most of the fund's assets are allocated to the Materials, Chemicals, Energy, Metals & Mining, and Consumer Staples sectors. It has a lower exposure to the Materials and Chemicals sectors.
  • CCL Products (India) Ltd., Tata Steel Ltd., UltraTech Cement Ltd., K.P.R. Mill Ltd., and Reliance Industries Ltd. are the fund's top holdings.

2. UTI Transportation And Logistics Fund Direct-Growth

This thematic mutual fund is from the UTI Mutual Fund. The fund has been active in the market for 10 years and five months. As of March 31, 2023, the fund has Rs 2,159 crores in assets under management (AUM).

  • The expense ratio is 1.03%.
  • The one-year returns for UTI Transportation and Logistics Fund Direct-Growth have been 26.34%. Since the beginning, it has generated average annual returns of 18.17%.
  • Most of the fund's assets are allocated to the Services, Automobile, Capital Goods, Metals & Mining sectors. 
  • The fund's top holdings include Mahindra & Mahindra Ltd., Maruti Suzuki India Ltd., Tata Motors Ltd., Eicher Motors Ltd., and Bajaj Auto Ltd.

3. Tata Ethical Direct Plan-Growth

The fund listed under Tata Mutual Funds has been active in the market for 10 years and five months. As of March 31, 2023, the fund has Rs 1,669 crores in assets under management (AUM). 

  • The expense ratio is 0.92%.
  • The one-year returns have been 17.09%. Since the beginning, it has generated an average annual return of 15.48%.
  • Most of the fund's assets are allocated to the Capital Goods, technology, materials, etc.
  • The fund's top holdings include Infosys Ltd., Tata Consultancy Services Ltd., HCL Technologies Ltd., Siemens Ltd., and Hindustan Unilever Ltd.

4. ICICI Prudential Exports And Services Fund Direct-Growth

The thematic mutual fund from the ICICI Prudential Mutual Fund has been active in the market for 10 years and five months. As of March 31, 2023, the fund has Rs 1,026 crores in AUM and is a medium-sized fund within its category.

  • The expense ratio is 1.77%.
  • The one-year returns for Tata Ethical Direct Plan-Growth have been 16.40%. Since the beginning, it has generated average annual returns of 18.06%.
  • Most of the fund's assets are allocated to the Healthcare, Energy, Financial, Technology, and Services sectors. 
  • The fund's top holdings include ICICI Bank Ltd., Sun Pharmaceutical Industries Ltd., Infosys Ltd., Axis Bank Ltd., National Thermal Power Corp. Ltd., etc. 

Final Words

Before investing in funds, it's important to analyze the sector or theme. It's a good idea to gain insights about the industry or theme you're interested in and keep up with analyst reports. Additionally, it is important to monitor the companies to determine if they are generating profitable returns. Assess your risk profile and only then invest in thematic mutual funds. Explore the mutual fund Calculator and gain deeper insights

Related Articles: Best Mutual Funds SIPs | Different types of Mutual Funds to suit your needs | How to analyse Mutual funds for big returns

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