4 Top Crisil Rated Thematic Funds For Aggressive Investor Class

Thematic Funds are gaining ground as some of the sectors owing to one or the other reason are throwing signals of huge prospects going ahead say for as in the IT, pharma, specialty chemicals space etc., likewise there is traction in thematic schemes. This is very much evident from the fact that the category raked in the second highest inflow after multi-cap funds. Though risky and not suitable for every investor category, if the prospects of the industry as a whole are good as say in the current case for the IT, pharma and such other sectors, these have the potential to yield multi-bagger returns.

Crisil 5-star rated thematic schemes

Thematic fund	1-year SIP return	3-year SIP return	5-year SIP return	Minimum SIP amount
BOI AXA Manufacturing & Infrastructure Fund - Growth	61.00%	38.00%	22.00%	Rs. 1000
DSP Natural Resources and New Energy Fund - Regular Plan - Growth	62.00%	37.00%	21.00%	Rs. 500
Invesco India Infrastructure Fund - Growth	71.00%	38.00%	23.00%	Rs. 500
Sundaram Rural and Consumption Fund - Growth	41.00%	24.00%	15.00%	Rs. 100

Why Thematic Funds have become the flavor of the season?

The economic situation in the country though uncertain has picked up fast amid pick up in Covid 19 vaccination program and government support measures and this has infused confidence among investors. This is evident as even amid such high valuations, their risk-on sentiment seems to be high.

Nonetheless, this is also an indication of the fact that as these theme based investment may take time to perform, investors are not keen to withdraw their investments in the short to medium term. Perhaps, indicating long term goals being targeted through these plans

Points to note when zeroing in or selecting thematic funds

1. Thematic funds are or will be an apt choice for goals that are beyond 5 years say daughter's education or children education, retirement etc.

2. Highly risky avenue not suggested for first time investors and also there is a high possibility that the sector you see to reach its peak down 5 years may even take a longer span, so your targeted goals may or may not be realized. No surety of the investment yielding the estimated return in a given investment term.

Which sectors or themes delivered the best performance?

Some of the sectors or themes in the mutual fund space that have emerged as the winners into the category in the last 1-year are:

1. Technology funds
2. Infrastructure
3. Banking and financial services
4. Natural resources and energy sector funds

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