As thematic funds continue to be the top contributor to inflows month-on-month, despite the decline in the previous October month. There is a view that the recent traction into thematic funds was primarily into the existing funds and higher return led into the inflows into the category.

Himanshu Srivastava – Associate Director- Manager Research, Morningstar Investment Research India said, “Investors should be prudent while short listing and investing in them as they tend to be high risk high return investment proposition and is largely for investors who have the skills to guidance to track underlying sector or theme to make informed investment decisions. Moreover, every sector and its dynamic is different and so would be their outcome, hence investors should not consider all sector funds as one.”