The word 'thematic' itself explains the idea-it's all about focusing on a specific theme. Instead of spreading attention across different areas or topics, thematic investing zooms in on one idea. You probably have attended a theme party in your life or thrown a theme party for your friends or colleagues, whether it was centred on vampires, Hindi movies, vintage aesthetics, pirates, superheroes, or any other captivating concept. The essence of a themed party lies in guests immersing themselves in the theme, dressing up as characters or personas according to the chosen theme's context complete with appropriate outfits and accessories.
Similarly, thematic funds also focus on different themes such as energy, technology, MNCs, financial services, PSU, etc. Thematic funds are a type of equity fund that invest in stocks of companies focused on specific themes. These funds aim to capitalise on emerging opportunities by investing in sectors aligned with themes such as manufacturing, innovation, real estate, transportation, technology and pharmaceuticals. Thematic fund investors are able to gain exposure to a focused area of the market that is judged to experience strong growth in the future.
Thematic funds offer investors a way to invest in broader trends and ideas they believe in or expect to shape the future economy. However, are you mixing up sectoral and thematic funds? Let us clarify. Thematic and sectoral funds both invest in companies in a specific industry or sector. The main difference between the two is that sectoral funds focus on companies within a specific industry while thematic funds focus on companies that are related to a specific theme or trend. Thematic funds invest in a theme that embodies an idea or a goal encompassing multiple sectors.
Diese Geschichte stammt aus der May 06, 2024-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 06, 2024-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures