The recent sell-off in the stock market has significantly impacted thematic mutual funds, with net asset values (NAVs) dropping by as much as 21% from their initial ₹10 offer price. Investors in newly launched thematic equity schemes are particularly affected, facing substantial losses as the market correction unfolds. The decline is noted across various sectors, including public sector undertakings (PSU), infrastructure, and consumption funds, which have shown sharp declines amid the turbulent equity environment. Experts caution that these types of funds can be volatile and are generally more suitable for experienced investors with a long-term investment strategy. Additionally, high-net-worth individuals (HNIs) are reportedly staying away from recent initial public offerings (IPOs) due to the current market instability.