Thematic-Quant Funds India: Top Picks & Strategy Guide

If you’re looking for investment opportunities, you might want to consider thematic-quant mutual funds, which have shown strong performance over the last three years.

These funds, highlighted by Trade Brains Money, use systematic, data-driven models instead of a fund manager’s individual decisions to pick stocks and rebalance portfolios.

Understanding Thematic-Quant Funds

Thematic-quant funds rely on a rules-based strategy, screening for factors like value, momentum, quality, growth, and volatility in stocks.

This means your investments are guided by objective data, which can be appealing if you prefer a less discretionary approach to managing your money.

Top Performers You Should Know

As of July 22, 2026, several thematic-quant mutual funds in India have delivered impressive 3-year annualized returns.

Here are the top five funds, ranked by their performance:

• The Quant Quantamental Fund led the pack with an 18.3% 3-year CAGR.
• Next up was the 360 ONE Quant Fund, achieving a 17.3% CAGR over the same period.
• The Nippon India Quant Fund recorded a 15.2% CAGR and notably featured the lowest expense ratio at 0.93%.
• You’ll also find the ICICI Prudential Quant Fund, which posted a 13.4% CAGR.
• Rounding out the top five is the Axis Quant Fund, with a 10.3% CAGR, though it had the highest expense ratio of 3.00%.

What Are the Risks Involved?

While these funds offer exciting returns, it’s important to understand the potential risks you face as an investor.

These specific investment vehicles come with their own set of considerations:

• Theme risk: The chosen investment theme might not perform as expected.
• Model risk: The quantitative models used could fail to predict market movements accurately.
• Market risk: General market downturns will still impact your investment value.
• Long-term horizon: You’ll need a long-term investment commitment to smooth out short-term volatility.

Is This Investment Right for You?

Investing in thematic-quant funds is best suited for a particular type of investor who understands and accepts certain conditions.

Consider if you fit this profile before making a decision:

• You have a high-risk appetite and are comfortable with market fluctuations.
• You prefer a systematic, data-driven investment approach over a fund manager’s personal discretion.
• You are prepared for a significant long-term commitment of 5+ years to see potential returns.

These funds can be a powerful addition to your portfolio if you align with their systematic strategy and long-term outlook.