Sectoral and Thematic Fund Inflows Drop 88% Amid Performance Challenges in January 2026

Sectoral and thematic mutual funds have seen an 88% year-on-year decline in net inflows to Rs 1,042.56 crore in January 2026, despite a 13.6% growth in assets under management to Rs 5.24 lakh crore. This slowdown is attributed to underperformance, market volatility, and shifting investor sentiment, particularly in technology-focused funds, which have struggled amid global economic concerns and sector-specific challenges. Experts advise cautious investment, favoring diversified funds over concentrated sector bets.