Thematic funds surge on NFO wave but can the momentum last? Experts advise caution
According to experts, the spike was primarily driven by a rush of new fund offers (NFOs) promising exposure to niche sectors, innovation themes and factor-based strategies. They, however, also cautioned that the trend is often fuelled more by launch hype than by durable investor conviction, raising concerns of over whether the momentum will hold once the novelty fades.