Thematic mutual funds took a hit in 2025—here's what went down

Business Jan 10, 2026

After a blockbuster 2024, most thematic mutual funds in India stumbled in 2025.
Pharma and infrastructure themes, which soared by 40% and 28% last year, dropped to around -4% and 0.54%.
Even IT funds slipped nearly 4%, though the number of IT thematic funds and total assets grew to ₹44,900 crore.

Why does this matter?

If you're tracking trends or thinking about investing, it's a reminder that sector-focused funds can swing wildly—big gains one year can turn into losses the next.
Some sectors like auto, banking, and energy still managed double-digit growth (up to 18%), but even those numbers were lower than before.
Meanwhile, global uncertainty—think "Trump tantrums"—hit export-heavy sectors like IT hard and left cyclical bets exposed when the hype faded.