The headline
Sectoral and thematic funds had a harder quarter than diversified funds. In the three months to 1 October 2026 the median of the 251 Direct-plan Growth funds in the category returned −2.80%. Only 66 of them, 26%, made money. The range was wide: from −10.88% to +15.31%.
The leaders were technology and pharma funds. The laggards were funds in banking, infrastructure and PSU themes.
The themes
We grouped funds by the words in their names, so each theme is only an approximation of what the fund holds. Returns are absolute three-month returns, medians within each group.
| Theme (from the fund name) | Funds | Median 3-month | Median 2026 so far | Range, 3-month |
|---|---|---|---|---|
| Technology / digital | 23 | +3.69% | −1.33% | −4.13% to +15.31% |
| Pharma / healthcare | 18 | +3.04% | +17.34% | −1.44% to +6.11% |
| Manufacturing | 12 | −0.72% | +10.86% | −4.47% to +4.56% |
| Consumption / FMCG | 25 | −4.45% | −8.01% | −10.30% to +9.36% |
| Energy / power | 6 | −4.46% | +1.31% | −7.02% to −0.75% |
| Infrastructure | 19 | −5.72% | +3.57% | −10.88% to −0.55% |
| Banking / financial | 31 | −6.30% | −5.70% | −9.22% to +0.42% |
| PSU | 5 | −6.41% | −2.91% | −6.95% to −5.15% |
Funds whose names do not point to one of these themes, and single-fund themes such as defence, are left out of the table but included in the overall figures above.
It matches the indices
The fund ranking follows the sector indices. From 30 June to 30 September, Nifty IT rose 5.3% and Nifty Pharma 4.4%, while Nifty Bank fell 5.1% and Nifty Financial Services 7.2%. Our sector index review has the whole table.
Technology: a good quarter, still a bad year
Technology funds' +3.69% median hides the fact that the sector is down this year. Nifty IT is down 25.3% in 2026 to 1 October; the median technology fund is down only 1.33%, because the group is not all pure software: the names include digital and innovation funds too.
The best fund in the group, Motilal Oswal Digital India Fund, returned 15.31% in the quarter, though only 3.53% over one year. Several other technology funds gained 7% to 9% in the quarter (Aditya Birla Sun Life Digital India 8.57%, Kotak Technology 8.30%, Axis Innovation 7.64%) while their one-year returns remain negative or flat. The dedicated page is technology fund returns.
Pharma: ahead for the year too
Pharma and healthcare funds combine a positive quarter with the best year-to-date median of any group in the table, +17.34%. The range across the 18 funds is also narrower than in most groups: −1.44% to +6.11%. See pharma and healthcare fund returns.
Where the losses were
- Banking and financial funds: 31 funds, median −6.30%, the largest group and the worst. The best of them returned just +0.42%.
- Infrastructure: −5.72% median. The weakest fund of all 251 was an infrastructure fund, Taurus Infrastructure Fund, at −10.88%.
- Consumption and FMCG: −4.45% median, with a fund-level range from −10.30% (ICICI Prudential FMCG Fund, whose one-year return is −20.02%) to +9.36%. The spread in this group is one of the widest, which suggests the label covers very different portfolios.
What this does not tell you
Names are not holdings. A "digital" or "innovation" fund may hold few IT companies. Check a fund's actual sector weights before treating its name as exposure.
Three months is a short window. One quarter does not rank sectors for the next. For the longer view of risk against reward, read sectoral and thematic funds: risk and reward.
Not a recommendation. This is what the NAVs show, not a view on any sector or fund.
Frequently asked questions
Which sector funds did best in the last three months?
Technology and digital funds, by name: 23 Direct-plan Growth funds had a median three-month return of +3.69% to 1 October 2026. Pharma and healthcare funds followed at +3.04%. The best single fund returned 15.31%.
Which sector funds did worst?
Banking and financial funds (median -6.30%, 31 funds) and the five PSU funds (-6.41%). The weakest single fund, an infrastructure fund, lost 10.88%.
Do these three-month returns mean technology funds recovered?
Not over the year. The median technology fund is still down 1.33% for 2026, while the median pharma fund is up 17.34%. A good quarter has not turned the year positive.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
Pharma and healthcare funds: all 17 are up over the year
All 17 pharma and healthcare funds with a one-year record gained in the year to 1 October 2026; the median made 17.50%. Best, worst, 3 and 5-year returns.
Sectoral and thematic funds: reward, risk or marketing?
Over three years to October 2026, sector fund returns ran from −4.4% to 36% a year. Pharma funds led at a 20.8% median; technology trailed at 4.9%.
Technology funds: 9 of 11 are down over the year
Nine of 11 technology and digital funds lost money in the year to 1 October 2026; the median fell 8.19%. 3 and 5-year returns, falls and innovation funds.