Ch.2 · Mutual Fund Structure Basics · hard

What distinguishes a 'thematic' fund from a 'sectoral' fund?

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EXPLANATION

A Sectoral fund focuses on a single sector (e.g., banking, IT). A Thematic fund invests around a broader theme that cuts across multiple sectors — e.g., an ESG theme may include IT, FMCG, and manufacturing companies; an infrastructure theme includes construction, cement, and energy. Both must invest minimum 80% in the theme/sector.

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