Sector-thematic NFOs: Beware lack of track record, concentration risk
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that the investment idea behind a new fund may not work out as the fund house expects, and warned against buying new fund offers for quick gains because of heavy marketing.
More of Abhishek's views on mutual funds
The article looks at the record number of new fund offers launched in 2024 and why sector and thematic launches carry extra risk. It covers the lack of a track record, narrow portfolios, timing risk in cyclical themes, and the case for sticking with established funds, plus a guide to passive fund launches.
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Sector-thematic NFOs: Beware lack of track record, concentration risk