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Top Mutual Fund Categories That Caught Investors’ Attention in 2025

Multiple mutual fund categories stayed in focus during 2025 as investors evaluated suitability, risk dynamics, and structural changes rather than just headline returns.
The year 2025 brought several mutual fund categories into sharp investor focus, not purely because of returns but due to structural, regulatory, and market driven factors. Sectoral and thematic funds remained in the spotlight amid cyclical rallies and volatility, while passive funds gained traction as cost efficiency and index based investing became more relevant. Debt fund categories also drew attention due to interest rate uncertainty and duration risks.