[PARTNERED]
Thematic funds are equity mutual funds which invest into stocks of companies that are bound by a unified theme. For example, the funds could follow themes like Environmental, Social and Governance (ESG), rural development, healthcare, manufacturing, consumer or even housing. As per Securities and Exchange Board of India (SEBI) mandate, 80 per cent of the asset allocation in Thematic Funds must be for equities or equity-related financial instruments.