Sectoral/Thematic Mutual Funds in India
Updated November 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 208 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 | +64.60% | +47.54% | - | 0.63 | -44.8% | 0.87% | ₹490 Cr |
| 2 | HDFC Defence Fund HDFC | +18.96% | +34.34% | - | 0.95 | -34.5% | 0.89% | ₹7.7K Cr |
| 3 | HDFC Pharma and Healthcare Fund HDFC | +32.21% | +31.10% | - | 1.32 | -14.9% | 1.17% | ₹2.0K Cr |
| 4 | SBI HEALTHCARE OPPORTUNITIES FUND SBI | +26.19% | +25.28% | +20.61% | 0.77 | -18.2% | 1.04% | ₹4.0K Cr |
| 5 | HDFC Transportation and Logistics Fund HDFC | +10.39% | +25.17% | - | 0.81 | -23.5% | 1.09% | ₹1.7K Cr |
| 6 | Mirae Asset Healthcare Fund Mirae Asset | +28.56% | +24.50% | +18.10% | 0.67 | -18.5% | 0.52% | ₹2.8K Cr |
| 7 | UTI Healthcare Fund UTI | +22.62% | +23.97% | +17.67% | 0.61 | -21.1% | 1.29% | ₹1.1K Cr |
| 8 | ICICI PRUDENTIAL TRANSPORTATION AND LOGISTICS FUND ICICI Prudential | +12.60% | +23.50% | - | 0.82 | -23.6% | 1.12% | ₹2.9K Cr |
| 9 | LIC MF Infrastructure Fund LIC | +10.82% | +22.82% | +20.03% | 0.85 | -26.7% | 0.82% | ₹969 Cr |
| 10 | ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund ICICI Prudential | +12.13% | +22.42% | +17.95% | 0.65 | -18.1% | 1.32% | ₹6.6K Cr |
| 11 | BANK OF INDIA Manufacturing & Infrastructure Fund Bank of India | +18.23% | +22.14% | +20.14% | 0.91 | -24.2% | 0.77% | ₹669 Cr |
| 12 | DSP Healthcare Fund DSP | +19.74% | +21.99% | +17.14% | 0.65 | -21.3% | 2.00% | ₹3.0K Cr |
| 13 | LIC MF Healthcare Fund LIC | +18.12% | +21.84% | - | 0.78 | -15.1% | 1.13% | ₹81 Cr |
| 14 | quant Healthcare Fund quant | +22.58% | +21.65% | - | 0.72 | -25.2% | 1.52% | ₹344 Cr |
| 15 | quant BFSI Fund quant | +9.83% | +21.39% | - | 0.71 | -22.3% | 1.02% | ₹755 Cr |
| 16 | Kotak Manufacture in India Fund Kotak Mahindra | +16.43% | +21.35% | - | 0.70 | -22.3% | - | ₹2.5K Cr |
| 17 | SBI PSU Fund SBI | +2.51% | +21.05% | +22.05% | 0.76 | -24.1% | 0.91% | ₹6.1K Cr |
| 18 | Aditya Birla Sun Life International Equity Fund Aditya Birla Sun Life | +12.88% | +21.01% | +10.77% | 0.33 | -16.6% | - | ₹296 Cr |
| 19 | Aditya Birla Sun Life Manufacturing Equity Fund Aditya Birla Sun Life | +17.77% | +20.97% | +15.06% | 0.56 | -22.9% | - | ₹1.1K Cr |
| 20 | Franklin Asian Equity Fund Franklin Templeton | +21.00% | +20.94% | +7.15% | -0.00 | -36.0% | 1.74% | ₹384 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.