Best Thematic Mutual Funds to invest in 2022

Best Thematic Mutual Funds 2022 - Top Thematic Mutual Funds in IndiaBest Thematic Mutual Funds for 2022 – Top Thematic Mutual Funds in India

Sector mutual fund would invest in specific sectors. However, there is another similar category which is thematic mutual funds that invests based on specific themes. It could be energy theme, consumption theme etc., These funds can perform extremely well in specific cycles. As an example, Tata Resources and Energy Fund generated 330% returns in last 7 years. Investors can invest a small amount in such funds as part of their portfolio. Which are the Best Thematic Mutual Funds to invest in 2022 in India? Which are the Best Thematic Mutual Funds in India that generated consistent rolling returns in the last 3 to 5 years.

Also Read: Best Sector Based Mutual Funds for 2022

What is thematic mutual fund?

Thematic mutual funds are equity funds that invest in stocks which are tied to a specific theme. Such themes can outperform in specific market cycles.

Thematic funds example – SBI ESG equity fund invests in stocks which fall under ESG theme (Environmental, Social and Governance).

Below are some of the themes where mutual funds are investing.

1) Consumption Theme

2) Energy Theme

3) Dividend Yield Theme

4) ESG Theme

5) MNC Theme

So on.

How we filtered these Top Thematic Mutual Funds to invest now?

Below is the criteria we have used.

1) Selected mutual funds that invests in specific themes and not sectors.

2) Funds that have beaten their peers in terms of annualized returns.

3) Fund that performed well and gave consistent rolling returns

4) Mutual Funds that have AUM of Rs 100 crore and above.

We have excluded any sector specific funds (e.g. banking fund or Infra fund).

Who can invest in these thematic mutual funds?

These thematic mutual funds are for short term to medium term. High risk investors who feel these themes would continue to perform well in the short to medium term can invest in these funds in small lots or through SIP for next 6 months to 1 year.

Low to moderate risk investors should avoid such themes.

Best Thematic Mutual Funds to invest in 2022

Here is the list of top performing thematic mutual funds.

#1 – Tata Resources & Energy Fund

#2 – Mirae Asset Great Consumer Fund

#3 – Canara Robeco Consumer Trends Fund

#4 – SBI Magnum Equity ESG Fund

Top Thematic Funds in 2022 – Fund Performance and Risk Metrics

Now let us get into more info about these funds.

#1 – Tata Resources & Energy Fund

Funds Investment Strategy

The scheme seeks long term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of the companies in the Resources & Energy sectors in India.

Funds Performance and Risk Statistics

Performance & Risk Metrics Tata Resources & Energy Fund
Value Research Rating NA
3 Years – SIP Returns 38%
5 Years – SIP Returns 26%
5 Years – Annualised Returns 17%
AUM –  Crores 208
Expense Ratio 1.01%
Risk Grade NA
Return Grade NA
Beta 0.56
Alpha 14.33

This fund has a low beta of 0.56. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 14.33. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests 97% in equity and balance holds in cash.

Its top holdings are Reliance Industries, Tata Steel, Hindalco, Jindal Steel, Ultratech Cement, Vendata, NALCO etc.

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 43.5% of the times
  • 8% to 12% returns – 14% of the times
  • < 8% returns – 36% of the times
  • Negative returns – 6.5% of the times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 100% of the times
  • 8% to 12% returns – Zero times
  • < 8% returns – Zero times
  • Negative returns – Zero times

This fund generated 21% annualized return since inception in 2015. Considering its outstanding performance in the category, it is one of the Best Thematic Mutual Fund to invest in 2022 from energy theme.

You may like: Best SWP mutual funds for regular income

#2 – Mirae Asset Great Consumer Fund

Funds Investment Strategy

The scheme seeks to generate long term capital appreciation by investing in equity and equity related securities of companies that are likely to benefit either directly or indirectly from consumption led demand in India.

Funds Performance and Risk Statistics

Performance & Risk Metrics Mirae Asset Great Consumer Fund
Value Research Rating NA
3 Years – SIP Returns 24%
5 Years – SIP Returns 19%
5 Years – Annualised Returns 17%
AUM –  Crores 1,656
Expense Ratio 0.59%
Risk Grade NA
Return Grade NA
Beta 0.77
Alpha 3.99

This fund has a low beta of 0.77. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 3.99. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests 98.9% in equity and balance holds in cash.

Its top holdings are ITC, Bharti Holdings, HUL, Asian Paints, Axis Bank, TVS Motors, HDFC Bank, Titan, Bata India, Britannia Industries etc.,

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 66% of the times
  • 8% to 12% returns – 11% of the times
  • < 8% returns – 23% of the times
  • Negative returns – zero times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 100% of the times
  • 8% to 12% returns – Zero times
  • < 8% returns – Zero times
  • Negative returns – Zero times

This fund generated 18% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the consumption theme category and low expense ratio, it is one of the Top Thematic Mutual Funds for 2022.

#3 – Canara Robeco Consumer Trends Fund

Funds Investment Strategy

The scheme seeks to provide long-term capital appreciation by primarily investing in equity and equity related securities of companies which directly or indirectly benefit from the growing consumer demand in India.

Funds Performance and Risk Statistics

Performance & Risk Metrics Canara Robeco Consumer Trends Fund
Value Research Rating NA
3 Years – SIP Returns 24%
5 Years – SIP Returns 19%
5 Years – Annualised Returns 16%
AUM –  Crores 778
Expense Ratio 1.09%
Risk Grade NA
Return Grade NA
Beta 0.72
Alpha 5.97

This fund has a low beta of 0.72. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 5.97. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests 96.2% in equity and balance holds in cash.

Its top holdings are ITC, HDFC Bank, ICICI Bank, HUL, SBI, Titan, Axis Bank, Bajaj Finance etc.

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 70% of the times
  • 8% to 12% returns – 13% of the times
  • < 8% returns – 17% of the times
  • Negative returns – zero times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 100% of the times
  • 8% to 12% returns – Zero times
  • < 8% returns – Zero times
  • Negative returns – Zero times

This fund generated 17% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the consumption theme category and low expense ratio, it is one of the Best Thematic Mutual Fund in India.

Also Read: Worried about volatility in investments, then invest in balanced advantage funds

#4 – SBI Magnum Equity ESG Fund

Funds Investment Strategy

The scheme seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of companies following Environmental, Social and Governance (ESG) criteria.

Funds Performance and Risk Statistics

Performance & Risk Metrics SBI Magnum Equity ESG Fund
Value Research Rating NA
3 Years – SIP Returns 20%
5 Years – SIP Returns 16%
5 Years – Annualised Returns 14%
AUM –  Crores 4,583
Expense Ratio 1.35%
Risk Grade NA
Return Grade NA
Beta 0.97
Alpha 1.45

This fund has a low beta of 0.97. Beta refers to the volatility of the fund compared to its benchmark (which is 1). Any fund that has a beta of lower than 1 can be considered as less volatile compared to the benchmark.

This fund has a high alpha of 1.45. Alpha is excess returns earned over the benchmark. Any fund that has alpha of more than zero can provide higher returns compared to benchmark.

Currently it invests 99% in equity and balance holds in cash.

Its top holdings are Infosys, HDFC Bank, ICICI Bank, Axis Bank, L&T, Wipro, Page Industries, TCS, Tata motors, Titan, Bharti Airtel, Maruti etc.,

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 59% of the times
  • 8% to 12% returns – 16% of the times
  • < 8% returns – 22% of the times
  • Negative returns – 3% of the times

From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:

  • Over 12% returns – 63% of the times
  • 8% to 12% returns – 22% of the times
  • < 8% returns – 15% of the times
  • Negative returns – Zero times

This fund generated 14% annualized return since inception in 2013 (direct fund). Considering its outstanding performance in the theme, it is one of the Best Thematic Mutual Funds in India in ESG theme.

List of Thematic Funds with annualised returns

Mutual Fund Name 1 Year 3 Years 5 Years
Tata Resources & Energy Fund 25% 30% 17%
Mirae Asset Great Consumer Fund 23% 18% 17%
Canara Robeco Consumer Trends Fund 19% 20% 16%
SBI Magnum Equity ESG Fund 17% 15% 14%

Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.

Suresh KP

Leave a Reply

Your email address will not be published.