When it comes to mutual funds, most investors prefer diversified funds that balance risk and return. However, for those seeking high growth opportunities, thematic mutual funds can be an exciting option. These funds focus on specific sectors or investment themes and can deliver impressive returns if the theme performs well. Over the last 5 years, several thematic mutual funds have delivered over 30% CAGR, making them top performers worth exploring in 2025.
Earlier we have analysed 5 Index Mutual Funds with Over 30% CAGR in the Last 3 Years.
What are Thematic Mutual Funds?
Thematic mutual funds invest in a particular theme or strategy instead of spreading investments across sectors. Examples of themes include commodities, public sector undertakings (PSUs), dividend yield strategies, or opportunities-based investing. Unlike sector funds, thematic funds can cover multiple sectors under one investment theme. While the potential for higher returns is attractive, investors must also be aware of the higher risks due to concentration.
How We Identified These Top Performing Thematic Mutual Funds
For this analysis, we considered all thematic mutual funds in India which covers covers funds across commodities, PSU-focused, dividend yield, and opportunity-based themes etc.
Filtered those that delivered over 30% CAGR in the last 5 years. These funds have consistently rewarded investors with superior returns.
Investors can also check 10 CRISIL 5-Star Rated Mutual Funds with Over 30% CAGR in 5 Years.
Data as on 15-Sep-2025 from AMFI website.
List of 7 Thematic Mutual Funds with 30%+ CAGR in 5 Years – Top Performers to Know in 2025
- ICICI Prudential Commodities Fund
- Aditya Birla Sun Life PSU Equity Fund
- ICICI Prudential India Opportunities Fund
- SBI PSU Fund
- ICICI Prudential Dividend Yield Equity Fund
- Franklin India Opportunities Fund
- Invesco India PSU Equity Fund
Deep Dive into Each Thematic Mutual Fund
1. ICICI Prudential Commodities Fund
Fund Objective: Invests in companies engaged in commodity and commodity-related businesses, benefiting from rising commodity demand.
Annualised Returns:
- 1 Year: 3.7%
- 3 Years: 19.18%
- 5 Years: 32.78%
- 10 Years: Not Applicable
Who Can Invest: Investors seeking exposure to commodities and looking for high-growth opportunities.
Risk Factors:
- Highly cyclical returns
- Global commodity price dependency
- Sector concentration risk
This fund is part of 7 Mutual Funds That Turned ₹ 1 Lakh Into ₹ 5 Lakhs in 5 Years.
2. Aditya Birla Sun Life PSU Equity Fund
Fund Objective: Focuses on companies where the government holds a majority stake, aiming to benefit from reforms and growth in PSUs.
Annualised Returns:
- 1 Year: -7.7%
- 3 Years: 28.2%
- 5 Years: 32.5%
- 10 Years: Not Applicable
Who Can Invest: Investors who believe in the PSU growth story and government-driven reforms.
Risk Factors:
- Dependence on government policies
- Political and regulatory risks
- Concentration in PSU-heavy sectors
3. ICICI Prudential India Opportunities Fund
Fund Objective: Invests across sectors and market caps based on emerging opportunities in the Indian economy.
Annualised Returns:
- 1 Year: 1.7%
- 3 Years: 23.7%
- 5 Years: 32.2%
- 10 Years: Not Applicable
Who Can Invest: Investors seeking diversified exposure to unique opportunities across sectors.
Risk Factors:
- Dynamic portfolio may lead to higher volatility
- Reliance on fund manager’s strategy
4. SBI PSU Fund
Fund Objective: Focuses on equity and equity-related instruments of public sector undertakings.
Annualised Returns:
- 1 Year: -3%
- 3 Years: 29.9%
- 5 Years: 31.9%
-
10 Years: 14.9%
Who Can Invest: Investors optimistic about PSU sector growth and government spending.
Risk Factors:
- Heavy exposure to PSU banks and energy companies
- Sensitive to economic cycles
This fund is among Top 10 Mutual Funds with Highest 5-Year SIP Returns (Over 30%).
5. ICICI Prudential Dividend Yield Equity Fund
Fund Objective: Targets companies that pay consistent and high dividends, aiming for stable returns with potential capital appreciation.
Annualised Returns:
- 1 Year: 1.3%
- 3 Years: 24.5%
- 5 Years: 30.6%
- 10 Years: 17.4%
Who Can Invest: Conservative investors seeking dividend-paying companies with growth.
Risk Factors:
- Limited exposure to growth companies
- Dependent on dividend policy of firms
6. Franklin India Opportunities Fund
Fund Objective: Invests in opportunities across themes and sectors, with a focus on long-term capital appreciation.
Annualised Returns:
- 1 Year: 1.4%
- 3 Years: 29.3%
- 5 Years: 30.3%
- 10 Years: 17.9%
Who Can Invest: Investors looking for broad-based opportunity-driven exposure.
Risk Factors:
- Higher portfolio turnover risk
- Reliance on emerging market trends
We reviewed this fund among 15 Mutual Funds Outperformed in Last 3 Years with 120% to 380% Returns.
7. Invesco India PSU Equity Fund
Fund Objective: Concentrates on companies in the PSU space, aiming to capture growth from reforms and government initiatives.
Annualised Returns:
- 1 Year: -3.5%
- 3 Years: 30.0%
- 5 Years: 30.2%
- 10 Years: 18.7%
Who Can Invest: Investors who want long-term exposure to PSU companies with reform potential.
Risk Factors:
- Sector and policy risks
- Volatility due to government decisions
Conclusion
Thematic mutual funds can be a rewarding option for investors who understand their high-risk, high-reward nature. The 7 funds highlighted here have delivered over 30% CAGR in the last 5 years, making them top performers in their category. However, past performance does not guarantee future results. Investors should align these funds with their risk appetite, investment horizon, and financial goals before making a decision.
Disclaimer: This article is for informational purposes only. Mutual fund investments are subject to market risks. Please consult a financial advisor before investing.
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