Sectoral and thematic mutual fund inflows drop 28 percent in April as investors grow cautious

Investors may be chasing themes then moving on fast

Sectoral and thematic mutual fund inflows fell 28% in April, a sharp dip that analysts link to investors rotating out after chasing “hot” themes. While interest persists in areas like defence and manufacturing, experts advise leaning on diversified funds for steadier long-term returns. Existing SIPs can continue, but with controlled exposure.