Sectoral, thematic fund inflows sink 89% in 1 year amid weak returns and changing investor preferences: ICRA Analytics

Sectoral and thematic mutual fund inflows have plunged nearly 89% year-on-year to ₹1,043 crore in January 2026, reflecting weak performance, heightened volatility, and shifting investor preferences, according to ICRA Analytics. Investors are moving away from concentrated thematic bets toward diversified strategies as sector cycles reverse and caution rises.