Sectoral and thematic funds in India witnessed a staggering 488% growth in net collections last year, accumulating a total of ₹1,09,711 crore, which constitutes 34% of total net collections, according to a report released on Wednesday by Ventura Securities.
The report highlights that the manufacturing, infrastructure, and energy sectors significantly contributed 56% to the total net collection in sectoral and thematic funds. Meanwhile, the FMCG sector accounted for 9%, Business Cycle 6%, and PSU 5%.
Under sectorial and thematic schemes, the Business Cycle Funds’ net collection skyrocketed to ₹6,841 crore in 2024 from just ₹103 crore in 2023. Similarly, the energy sector’s net collections surged to ₹23,964 crore in 2024, compared to a mere ₹470 crore in 2023.
Large-cap net collections amounted to ₹17,404 crore last year, recovering from a deficit of ₹-3,768 crore in 2023. Meanwhile, multi caps and flexi caps saw net collections of ₹37,649 crore and ₹36,231 crore respectively in 2024. However, small caps dipped to ₹29,555 crore from ₹45,270 crore in 2023.
Domestic institutional investors (DIIs) recorded a net equity inflow of ₹5.27 lakh crore, with October alone seeing the highest inflow of ₹1.07 lakh crore. DII net equity inflows nearly tripled compared to 2023, balancing the high outflow from foreign institutional investors (FIIs) in October with their record equity inflow for the month.
“All categories achieved double-digit, positive returns for the second consecutive year. Pharma topped the list with a 40.5% return, whereas Banking and Financial Services had the lowest at 11.5%,” the report mentioned.
The report reflects an evolving market sentiment in 2024, characterized by a rise in thematic investments, contrasting FII and DII flows, and notable sectoral shifts.
