Archive · 14 Aug 2025
Thematic Funds See Huge Inflow Jump in July, Driven by NFOs
In July, a lot of money went into special investment funds focused on particular themes or sectors.
This was because several new funds were introduced.
These funds use different strategies to pick stocks, such as looking at value or how well a stock is doing.
Experts say it's important to choose the right time to invest in these funds, as some strategies haven't been doing well recently.
Some also suggest that using Exchange Traded Funds (ETFs) for a single strategy might be better.
Thematic and sectoral funds saw an over 1800% increase in inflows in July, driven by new fund offers (NFOs).
Seven NFOs launched in July significantly contributed to the surge, with three being factor funds.
Total NFO collections reached a record Rs 30,416 crore in July, with thematic and sectoral funds accounting for Rs 7,404 crore.
Experts suggest that timing is crucial when investing in factor funds, as many factors have recently underperformed.
Some experts recommend ETFs over single factor funds.
- Who
- Investors and fund managers.
- What
- Thematic and sectoral funds experienced a substantial increase in inflows, driven by new fund offers (NFOs).
- When
- July
- Where
- N/A
- Why
- Driven by new fund offerings and the appeal of thematic and sectoral investment strategies.
- NFO Collections in July
- Rs 30,416 crore
- Thematic & Sectoral Contribution
- Rs 7,404 crore
- Inflow Increase
- Over 1800%
- Number of NFOs
- 7
- Factor Funds
- 3 of the 7 NFOs
