Thematic mutual funds are a specialised type of mutual fund which focuses on specific themes or trends that are anticipated to outperform the broader market over time. These themes could be based on sectors (like technology or healthcare), or emerging innovations (like artificial intelligence, clean energy, or ESG—Environmental, Social, and Governance).
Investors seek to capitalise on long-term structural shifts in the economy with the help of investments in a concentrated portfolio aligned with a particular theme. However, this focused approach also introduces higher risk, making it essential for investors to understand the underlying theme and its long-term viability.
In this article, we’ll take a closer look at the best thematic mutual funds in India for September 2025 based on 3Y CAGR.
| Name | AUM (₹ Crore) | 3Y CAGR (%) |
| SBI PSU Fund | 5,278.16 | 32.05 |
| Franklin India Opportunities Fund | 7,375.63 | 31.88 |
| Invesco India PSU Equity Fund | 1,390.50 | 31.67 |
| Aditya Birla SL PSU Equity Fund | 5,418.32 | 30.72 |
| ICICI Pru Manufacturing Fund | 6,602.43 | 26.86 |
Note: The Thematic Mutual Funds mentioned above have been selected and sorted based on 3Y CAGR with a minimum AUM of ₹ 1,000 Crore as of Aug 26, 2025
This is an open-ended equity scheme investing in the PSU/PSU subsidiaries sectors. The scheme aims to provide investors with opportunities for long-term growth in capital, along with liquidity.
An open-ended equity fund, which is beneficial for investors looking long long-term capital appreciation by investing in special situation themes.
Invesco India PSU Equity Fund aims to derive capital appreciation by investing in Equity and Equity Related Instruments of companies where the Central / State Government(s) have majority shareholding or management control or have the power to appoint the majority of directors.
Also Read: Best Mutual Funds for Lump Sum Investments in India for September 2025
The thematic mutual funds provide an opportunity to align investments with emerging trends and personal convictions, potentially leading to significant returns if things are favourable as anticipated. However, their concentrated exposure makes them more volatile than diversified mutual funds. As such, thematic funds are best suited for investors with a higher risk tolerance, a long-term horizon, and a clear understanding of the theme’s growth potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 26, 2025, 9:55 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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