New Delhi, Nov. 12 -- India's mutual fund industry is facing a curious paradox, with asset managers doubling down on thematic and sectoral funds even as investors in new fund offers (NFOs) turn lukewarm towards them.

Capital raised through thematic NFOs in the 12 months ended October 2025 plunged 52% from a year earlier, totalling around Rs.33,712 crore, data from the Association of Mutual Funds of India showed. Further, the share of thematic and sectoral funds in overall NFO collections declined to 42% from 62% the previous year.

Yet, the pace of launches barely missed a beat.







Mutual funds introduced 45 new thematic and sectoral NFOs in the 12 months to October 2025, virtually unchanged from the previous year's 44. This push com...