In April, inflows into sectoral and thematic mutual funds in India dropped by 28%, reaching ₹1,949 crore compared to ₹2,698 crore in March. This decline follows a 10% dip in March, marking two consecutive months of reduced inflows. Rajesh Minocha, a Certified Financial Planner, noted that investors often chase popular investments, but when interest wanes, they seek alternatives. As a result, many are now considering diversified strategies rather than focusing solely on thematic investments. Pallav Agarwal, another financial expert, emphasized that sectoral funds accounted for only 5% of the total equity fund inflows of ₹38,000 crore in April. Despite the decline, some sectoral funds performed well, with the Quant Infrastructure Fund leading with a 20.06% return. Experts advise that while maintaining Systematic Investment Plans (SIPs) in these funds can be beneficial during uncertain market conditions, investors should limit their exposure to 10-15% of their total portfolio and focus on diversified themes for better long-term stability.