Thematic Funds in India Experience 488% Surge in Net Collections Driven by Manufacturing and Energy Sectors
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Synopsis
Thematic funds in India saw a staggering 488% increase in net collections last year, totaling Rs. 1,09,711 crore. Manufacturing and energy sectors were key contributors to this growth, according to a recent report. Domestic institutional investors played a significant role in stabilizing the market amidst fluctuating foreign inflows.
Key Takeaways
- Thematic funds grew by 488% in net collections.
- Total collections reached Rs. 1,09,711 crore.
- Manufacturing, infrastructure, and energy contributed 56% of collections.
- Domestic institutional investors saw a net inflow of Rs. 5.27 lakh crore.
- All categories delivered double-digit returns for the second consecutive year.
Mumbai, Jan 15 (NationPress) Thematic funds experienced an impressive 488% growth in net collections over the past year, with sectoral and thematic funds accumulating Rs. 1,09,711 crore (accounting for 34% of total net collections), according to a report released on Wednesday.
Among the total net collections in sectoral and thematic funds last year, manufacturing, infrastructure, and energy contributed a combined 56%, while FMCG accounted for 9%, followed by Business Cycle at 6% and PSU at 5%, as highlighted by the report from Ventura Securities.
In the realm of sectorial and thematic schemes, Business Cycle Funds saw net collections rise to Rs. 6,841 crore in 2024 from only Rs. 103 crore in 2023. The energy sector amassed Rs. 23,964 crore in 2024 compared to Rs. 470 crore the previous year.
Large cap net collections stood at Rs. 17,404 crore last year, a significant turnaround from Rs. -3,768 crore in 2023.
Net collections for multi caps and Flexicap were noted at Rs. 37,649 crore and Rs. 36,231 crore, respectively, in CY 2024. Conversely, small caps saw a decline to Rs. 29,555 crore in 2024, down from Rs. 45,270 crore in 2023, as per the report.
Domestic institutional investors (DIIs) recorded a net equity inflow of Rs. 5.27 lakh crore, with October marking the highest inflow at Rs. 1.07 lakh crore.
DII net equity inflows nearly tripled compared to 2023. Despite significant outflows from FIIs in October, DIIs stabilized the market with their extraordinary equity inflow for the month, according to the report.
“All categories achieved double-digit, positive returns for the second consecutive year. Pharma led the way with a 40.5% return, while Banking and Financial Services had the lowest at 11.5%, as stated in the report.
The investment landscape in 2024 mirrored changing market sentiment, highlighted by an increase in thematic investments, contrasting flows of FII and DII, and significant shifts across sectors.
