Sectoral & thematic equity funds log highest inflows in a year, led by defence, PSU and manufacturing

According to a recent industry dashboard by Franklin Templeton, sector-specific and thematic equity mutual-fund schemes in India have attracted the largest inflows over the past 12 months. Defence, public-sector-unit (PSU) and manufacturing-themed funds received ₹69,235 crore in net inflows, outperforming diversified equity funds. Industry analysts suggest this indicates investor sentiment aligning with India’s policy-led growth narrative, though they caution that higher concentration and thematic bet-risk may increase exposure to sector cycle swings.