Best 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 โ Fund Performance and Risk Metrics
Now let us get into more info about these funds.
#1 โ 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 –ย 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 โ 43.5% of the times
- 8% to 12% returns โ 14% of the times
- < 8% returns โ 36% of the times
- Negative returns โ 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 โ 100% of the times
- 8% to 12% returns โ Zero times
- < 8% returns โ Zero times
- Negative returns โ 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.
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#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 –ย 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 โ 66% of the times
- 8% to 12% returns โ 11% of the times
- < 8% returns โ 23% of the times
- Negative returns โ zero times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns โ 100% of the times
- 8% to 12% returns โ Zero times
- < 8% returns โ Zero times
- Negative returns โ 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 –ย 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 โ 70% of the times
- 8% to 12% returns โ 13% of the times
- < 8% returns โ 17% of the times
- Negative returns โ zero times
From a 5 year rolling return perspective (to 2013 where direct funds data are available), this fund generated:
- Over 12% returns โ 100% of the times
- 8% to 12% returns โ Zero times
- < 8% returns โ Zero times
- Negative returns โ 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 –ย 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 โ 59% of the times
- 8% to 12% returns โ 16% of the times
- < 8% returns โ 22% of the times
- Negative returns โ 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 โ 63% of the times
- 8% to 12% returns โ 22% of the times
- < 8% returns โ 15% of the times
- Negative returns โ 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% |
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