A 20-point gap in one category
Sectoral and thematic is the SEBI category for funds that invest in a sector (technology, banking, pharma), a theme (consumption, infrastructure, business cycles) or a style (momentum, quant, multi-factor). In the three months to 19 October 2026 it had both the winners and the losers of the equity world.
Of 253 Direct Growth funds with a three-month return, 38 rose and 215 fell. The best fund returned +10.0% and the worst −10.2%, a gap of 20 points inside one category. The Nifty 50 fell 5.9% over the same stretch. Our index quarter post has the 138 indices behind it.
The top of the table
| Fund | Three months | 2026 so far |
|---|---|---|
| Motilal Oswal Digital India Fund | +10.0% | +4.0% |
| Nippon India Taiwan Equity Fund | +8.6% | +82.8% |
| Aditya Birla Sun Life Digital India Fund | +8.3% | −8.2% |
| Kotak Technology Fund | +8.1% | −8.6% |
| SBI Technology Opportunities Fund | +7.8% | −9.6% |
| Motilal Oswal Special Opportunities Fund | +7.3% | +16.1% |
| ICICI Prudential Technology Fund | +6.3% | −11.0% |
| Motilal Oswal Consumption Fund | +6.3% | +14.1% |
| Samco Active Momentum Fund | +5.7% | +16.4% |
| Motilal Oswal Active Momentum Fund | +5.5% | +16.1% |
| Edelweiss Technology Fund | +5.3% | +4.7% |
| Franklin India Technology Fund | +5.0% | −10.2% |
Technology is the theme. Seven of the twelve are technology or digital funds, which matches the index picture: Nifty IT rose 7.8% and Nifty India Digital 3.8% in the quarter. The Taiwan fund invests in Taiwanese equities, and the momentum funds follow recent price strength.
The quarter and the year disagree. Five of the technology funds are still negative for 2026, between −8.2% and −11.0%. The rise since mid-July has recovered part of an earlier fall; it has not erased it. Our technology fund post has the longer record and the Nifty IT P/E shows the valuation.
The bottom of the table
| Fund | Three months | 2026 so far |
|---|---|---|
| Taurus Infrastructure Fund | −10.2% | −14.1% |
| Bandhan Multi-Factor Fund | −10.2% | −15.5% |
| quant Commodities Fund | −9.3% | +4.9% |
| ICICI Prudential FMCG Fund | −9.1% | −19.5% |
| Axis Quant Fund | −8.6% | −8.5% |
| Tata Business Cycle Fund | −8.4% | −6.5% |
| Franklin Build India Fund | −8.1% | −6.3% |
| quant BFSI Fund | −8.1% | +0.5% |
These are infrastructure, FMCG, commodity and financial funds, the same corners that fell in the index data: Nifty FMCG −9.8%, Infrastructure −7.6%, Commodities −8.1%. Two entries show how the quarter and the year can differ in the other direction: the quant Commodities and quant BFSI funds fell in the quarter but are still positive for 2026.
Reading a thematic fund
A theme is a concentrated bet. The range from +10.0% to −10.2% inside one category is what concentration looks like. A diversified flexi cap fund's three-month return in the same period had a far narrower range (best +3.3%, worst −6.9% across 44 funds).
Different names can mean the same stocks. Several of the leaders are technology, digital or "special opportunities" funds whose holdings overlap. Use the portfolio overlap tool before assuming two funds diversify each other.
Position size matters. A fund like this is usually a small part of a portfolio. The more important question for most investors is how much of their money already sits in the same sector through diversified funds.
Costs. Thematic funds often charge more than index funds, so a quarter's lead has to be set against the expense ratio.
This post describes three months of returns on Direct Growth NAVs. It does not say any theme will continue or reverse.
Frequently asked questions
How did sectoral and thematic funds do in the last three months?
Of 253 Direct Growth sectoral and thematic funds with a three-month return on 19 October 2026, 38 had risen and 215 had fallen. The best was Motilal Oswal Digital India Fund at +10.0% and the worst were Taurus Infrastructure Fund and Bandhan Multi-Factor Fund, both at −10.2%.
Are technology funds having a good year?
They have had a good quarter, not yet a good year. Digital and technology funds rose 5% to 10% in three months, matching Nifty IT's +7.8%, but ABSL Digital India (−8.2%), Kotak Technology (−8.6%), SBI Technology Opportunities (−9.6%) and ICICI Prudential Technology (−11.0%) are still negative for 2026.
Why is the gap between thematic funds so wide?
Each fund holds one sector or one idea, so it moves with that group. Over the same quarter the Nifty Media and IT indices rose about 8% while Nifty Hospitals fell 17.4% and Nifty Cement 12.1%. A thematic fund can be any of these depending on what it holds.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
102 of 232 thematic funds rose in a year, FMCG fell 22%
To 19 October 2026 the median sectoral or thematic fund returned -1.2% over a year. Taiwan and Japan funds led; FMCG and consumption funds fell 12% to 22%.
Thematic funds launched in 2024: 14 of 53 trade below ₹10
53 of the 70 equity funds launched in 2024 are sector or thematic funds. Fourteen have a NAV under the ₹10 launch price; Q4 launches fared worst.
Sector funds in Q3 2026: technology and pharma led
Of 251 sectoral and thematic funds, 66 gained in the three months to 1 October 2026. Technology funds led (median +3.69%), banking funds trailed (-6.30%).