Mid-Cap and Small-Cap Funds: This is a fund type that focuses on the medium as well as the small companies. The wonderful potential for growth is there in these firms, which makes them somewhat riskier and thus much more volatile. The return might, however, be higher.
Sectorial/Thematic Funds: These funds specialize in specific sectors, such as technology, healthcare, or energy or broader themes such as sustainability. They can be highly rewarding but are quite sensitive to the economic performance of specific sectors.
These funds are for the long-term investors, who will invest at least for 5-10 years or more as these types of funds do well on extended periods. They also suit the wealth creation seekers over time and not required to produce returns immediately.