Sectoral and Thematic Mutual Funds See 28% Drop in April Inflows Despite Positive Returns

Sectoral and thematic mutual funds witnessed a decline in investor inflows during April, according to data released by the Association of Mutual Funds in India (AMFI). 

Sectoral and Thematic Fund Inflows Fall in April

AMFI data showed that inflows into sectoral and thematic mutual funds declined by 28% on a monthly basis in April. The category received ₹1,949 crore during the month compared to ₹2,698 crore in March.

On a year-on-year basis, inflows were also marginally lower. In April 2025, sectoral and thematic funds had attracted around ₹2,000 crore in investments, indicating a decline of nearly 3% this year.

The moderation in inflows may reflect changing investor sentiment towards theme-based investment strategies after strong participation in previous months.

Majority of Funds Deliver Positive Returns

Sectoral and thematic mutual funds continued to generate positive returns in April despite the decline in net inflows. Excluding international funds, there were 243 schemes within the category during the month.

Among these, 67 funds delivered double digit returns, while 176 schemes generated single digit gains. The performance trend indicates broad-based participation across several sector-focused strategies, although returns varied significantly between schemes.

Quant Mutual Fund Schemes Lead Monthly Returns

Three of the highest-performing funds in April were managed by Quant Mutual Fund.

• Quant Infrastructure Fund delivered a return of 20.06%
• Quant Commodities Fund posted 18.82%
• Quant PSU Fund generated 18.72%

These schemes benefited from gains in sectors linked to infrastructure, commodities and public sector companies during the month.

Meanwhile, Baroda BNP Paribas Manufacturing Fund recorded a return of 10.02%, placing it among the funds that crossed the double-digit return mark.

Manufacturing and Technology Funds See Moderate Gains

Motilal Oswal Manufacturing Fund generated a return of 9.96% in April, remaining just below the double-digit threshold.

At the lower end of the performance table, HDFC Technology Fund posted a return of around 1.07% during the month. The variation in returns highlights the differing market performance across sectors, particularly between cyclical and technology-oriented themes.

Read More: Invesco Mutual Fund Suspends Fresh Investments in 3 Overseas FoFs Amid SEBI Limit Concerns.

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Conclusion

Sectoral and thematic mutual funds saw a decline in inflows during April, although many schemes continued to deliver positive monthly returns. 

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 or 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.