Sectoral and thematic mutual fund inflows down 49% to Rs 945 crore in December. Is caution setting in among investors?

Investor interest in sectoral and thematic mutual funds saw a significant drop in December. Monthly inflows fell by 49% as many funds failed to beat their benchmarks. Experts attribute this to the cyclical nature of these funds and investors reacting to underperformance. This trend reflects a cautious approach to concentrated strategies, with a shift towards alternative assets like precious metals.