Over the past year, diversified fund categories such as large cap funds and flexi cap funds have delivered tepid or negative returns, in line with the underperformance of the broader market. The Nifty 50 TRI has returned just 0.6 %, the past year. Certain sectoral and thematic funds have, however, managed to buck this trend. For example, some of the top-performing infrastructure funds and consumption funds have fetched 1-year returns of 6-11% and 7-12%, respectively. While the current market correction may offer a good opportunity to invest, equity investors may be better off treading with caution on sectoral and thematic funds.