• SEBI mandates that thematic index funds must allocate at least 80% of their total assets in stocks that are part of the specific theme or sector they represent.
• Thematic funds differ from sectoral funds, as they focus on broader investment themes like digital innovation, ESG (Environmental, Social, and Governance), or infrastructure, rather than a single industry.
• The remaining 20% of the assets can be invested in other securities, cash instruments, or debt for diversification and liquidity management.
Study Notes
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