From a risk point of view, thematic funds are a little lower risk compared to sector funds because in sectors you are just focusing on one single sector. Now, if that call goes wrong, your portfolio will go down. A thematic fund is less risky than sectoral funds since it is a spectrum and has 5-6 sub-segments, you are more diversified. So, the highest risk is in the sector funds, the slightly lower risk is in thematic, and even lower risk is in diversified funds.