Sectoral/Thematic Mutual Fund

About

An open-ended equity scheme investing in a specific sector such as bank; power is a sectoral fund. While an open-ended equity scheme investing in line with an investment theme. For example, an infrastructure thematic fund might invest in shares of companies that are into infrastructure, construction, cement, steel, telecom, power etc. The minimum investment in equity and equity related instruments of a particular sector/ theme shall be 80 percent of total assets.

Fund Type

Equity

Key Features

Invests primarily in one sector or theme.

Can deliver strong returns if the sector/theme performs well.

Returns may fluctuate significantly

Suitable for investors who want to take sector-specific exposure

Taxation

STCG

Holding Period ≤ 12 months, 20% Tax on Gain

LTCG

Holding Period > 12 months, 12.5% Tax on Gain

Dividends Tax

As Per Income tax slab rates, TDS of 10% may be deducted by the fund house if dividend income exceeds ₹5,000 in a financial year.

Exemption Limit

1.25 Lakh on LTCG in financial year

Indexation

No Indexation .

Allocation

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Equity

80%

Other

20%

Locked in Period

Nill

Exit Load

An exit load of 1% is generally applicable if units are redeemed within 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.