Report card of thimatic funds is extremely bad, 95% of the returns of thimatic funds NIFTY less than 50 – Thematic Funds Fail to Deliver Expected Return 95 Percent Fund Return Less Than Nifty 50

There is a big difference between the performance of thimatic funds and the expectations of investors. The performance of 74 out of a total of 78 thimatic funds has been weaker than Nifty 50. These funds have lagged behind BSE 200 in the last one year of returns. About 47 percent of the funds have not been able to give as much returns as much as their benchmarks. However, despite the weak performance, investors are interested in these funds.

Many funds drown investors’ money

The weakest performance of 78 Thimatic Funds is the Samco Special Opportunities Fund-Reg (G). It has given 17 per cent negative returns against 5 per cent returns of NIFTY 500 TRI Benchmark. The second number is Quant PSU Fund -Regular (G), which has given about -10.02 per cent returns against the Return of the Nifty PSE -TRI index. These are just a few examples. The performance of many thimatic funds has been quite poorly.

Regulator also worried about poor performance

SEBI has also expressed concern over the poor performance of thimatic funds. Former SEBI chairperson Madhabi Puri Buch said in February 2025 that the regulator is looking into the matter. It is believed that a draft circular may come soon to remove the deficiencies of thimatic funds. However, SEBI did not answer Moneycontrol questions about this. Recently, SEBI executive director Maneez Kumar also said that the regulator is considering the category of thermatic funds.

The industry will have to adopt a responsible attitude

On 22 June, the Moneycontrol Mutual Fund Summit credited HDFC AMC MD and CEO Navneet Munot for making strict rules for thimatic funds to SEBI. For example, it is necessary to make 80 percent of the investment in shares associated with the theme. He said that innovation has its own importance, but it should not be at the cost of investors’ interest. The heads of the second asset management companies also expressed their opinion about this.

Also read: Which of the better NPS and EPF, can both be invested together?

Investors are interested in thimatic funds

The heads of AMC believed that a more responsible attitude would have to be adopted in launching new themetic funds. The interest of asset management companies in thimatic funds can be gauged from the fact that 19 new funds were launched in May. Through them, AMC raised around Rs 4,170 crore. Of these, 43 percent of the funds were thimatic or sectoral funds. In May, thimatic funds raised Rs 2,052 crore. This indicates that despite the weak performance, investors are interested in these funds.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *