Top sectoral and thematic funds see strong inflow momentum

Sectoral and thematic mutual funds witnessed a 37% month on month surge in inflows during November, driven by investors chasing recent outperformance and responding to several new fund launches. Market participants point to increased allocation toward high conviction themes such as manufacturing, PSU linked sectors, and technology. Experts caution that the trend appears tactical and FOMOdriven rather than a structural shift away from diversified equity funds, highlighting the higher volatility and timing risks associated with sector-focused strategies.