The Sectoral & Thematic Mutual Fund Trap: Why Chasing Defense, PSU & IT Funds Destroys Returns
By SIPPlanCalculator.in Editorial Desk • 11 Min Read
⚠️ Why Thematic Funds Are a Retail Trap
When AMCs launch Sectoral and Thematic NFOs (Defense, PSU, Pharma, Tech, EV), they launch them AFTER the sector has already experienced a massive bull run. Retail investors enter at peak valuations right before the cyclical mean-reversion phase begins.