The raging bull market over the past three years has attracted large flows into sectoral and thematic funds. The quantity of folios and the belongings beneath administration of these funds as of December 2024 have almost tripled in three years. Such funds give outsized returns solely in a beneficial upcycle and the returns they ship year-on-year differ extensively. Buyers should be cautious of this reality. The inconsistencies in efficiency are depicted within the charts.
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