Sectoral / thematic funds in India

254 live funds in the Sectoral / Thematic category, ordered by 5-year return, highest first; Aditya Birla Sun Life PSU Equity Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 28 Oct 2026; 3 and 5 year returns are a year, compounded.

Category median, 1 year
−3.87%Middle of 229 funds
Category median, 3 years
+13.05%Middle of 141 funds
Category median, 5 years
+10.74%Middle of 106 funds

Sectoral / Thematic funds

Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener

NAV of 28 Oct 2026

Tax on sectoral / thematic funds

Taxed as an equity fund where it keeps 65% or more in shares of listed Indian companies: gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh a year, and gains on units held 12 months or less at 20%. Otherwise, gains on units held over 24 months are taxed at 12.5%, and gains on units held 24 months or less at the income tax slab rate.

Rules in force from 1 Apr 2025, checked 27 Oct 2026. Surcharge and cess are not included.

About sectoral / thematic funds in India

Sectoral / thematic funds in India are equity mutual funds that put at least 80% of their assets into one sector, such as banking or pharma, or one theme, such as infrastructure or consumption. SEBI sets this rule for both fund types.

What SEBI requires

Since 26 Feb 2026 SEBI lists sectoral funds and thematic funds as two separate equity categories; this page shows them together, as one category. Each must hold at least 80% of total assets in equity and equity-related instruments of its sector or its theme. A sectoral fund names one sector. A thematic fund names a theme, and SEBI allows a theme to be a combination of two or more sectors.

Funds may be launched only for the sectors and themes on a list that AMFI, the mutual fund industry body, publishes and updates every six months in consultation with SEBI.

Overlap limit

Portfolio overlap between two funds is the sum, over the stocks both hold, of the smaller of the two weights. For a sectoral or thematic scheme, no more than 50% of its portfolio may overlap with other equity schemes, whether in this category or another, except large cap schemes. It is measured every quarter as the average of daily overlap values.

Existing schemes have 3 years from the SEBI circular of 26 Feb 2026 to comply, with 35% of the excess overlap cut in year 1, a further 35% in year 2 and the remaining 30% in year 3. A scheme that still misses the limit after 3 years must be merged with another.

Difference from diversified funds

A flexi cap or multi cap fund spreads money across many sectors and picks among them. A sectoral or thematic fund cannot: its 80% is tied to one area, so its results follow that area's cycle. SEBI otherwise allows one scheme per category for a fund house, but permits several sectoral or thematic funds when each covers a different sector or theme.

What this page shows

The page lists every live fund in this category with its latest NAV (net asset value, the price of one unit), 1-year return, and 3-year and 5-year returns compounded yearly. Funds are ordered by 5-year return, highest first, with funds younger than five years after them by name. The ranking mixes every sector and theme, so neighbouring funds can hold quite different shares.

Returns are for the plan each fund's page leads with, which is the Direct plan where the fund has one. Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio, the fee taken from the fund's assets. The category median is the middle return among the category's funds over the same window.