Thematic investing is investment that is future-oriented. The process of identifying future trends. The current environment is dynamic and changing at a rapid pace. Those who anticipate trends will win. The investment market is dominated by index services, which offer a wide variety of investment opportunities.
Index Services allows a person stay up-to-date with the latest investment portfolio and can accumulate information about thematic investing.
Thematic capitalises on long-term trends that cross economic and geographical boundaries. Thematic recognizes that the world is rapidly changing and therefore, its underlying drivers are long-term value creation.
Thematic Investing is a top-down approach to identifying strong macro-level trends using managed funds or a basket of related stocks. It seeks long-term, secure trends that will shape the future of financial markets. The biggest challenge is identifying the future’s key trends and deciding if these trends can be profitable investments in the future.
The main goal of thematic investing, however, is to invest in ideas or sectors that you believe will evolve without the interference of the economic cycle. This is more about your belief or conviction in future trends and technologies that you believe will be leaders. This alternative method is to investing through mutual funds.
Thematic Investment approach
1 Choose a specific theme or trend. This is based on the future-oriented themes and trends that you are convinced of. To find a profitable theme, one can study the future developments in technology, politics, and resources.
2 Identifying Similar Businesses: This allows you to identify companies or Exchange Traded Funds that have direct or indirect exposure for your chosen topic or idea by industry, product line, demographics, customer base, values, or holdings.
3) Reduce your choices: Based on your prediction, narrow down the stocks that best represent your theme.
1 Based on your values/ beliefs: It is better to invest in ideas and trends you believe in and are future-oriented than to risk your money. This allows you to align your values and your investment.
2 Vast Choice : You have many options to build a portfolio. Choose funds that match your chosen theme. There are many mutual funds that you can invest in.
3) Flexibility and Transparency: Creating your own portfolio is an exciting opportunity. You can identify the stocks you are most closely related to and make them your own. You can choose from a wide variety of stocks, and you can see transparently through the portfolio you have selected.
4) Accessible: Thematic investment has been gaining popularity and is now available to all investors. You can choose to invest in ideas you think will boom in the future.
Thematic Investments can be used to identify companies that are likely to benefit from long-term structural trends. In addition to helping you identify profitable portfolios, index services can also be used.