Thematic funds: The next best thing in investing?

There are many benefits of having a thematic fund in your portfolio. Let’s discuss them in detail.

• Favor Long-term investment

• Most retail investors make long-term investments as trading requires elaborate knowledge of the market trends and aggressive trading skills.
• Investing in thematic funds gives leverage to the investors. These funds are only for long-term investments.
• Once you identify the industry that is going to outperform, you can invest in the thematic fund of that industry.
• Thereafter the fund manager tends to the investments and the modifications required from time to time.
• You can grow your wealth by investing in these funds for a long-term period.

• More diversified compared to sectoral mutual funds

• Sectoral funds focus on a specific sector, for example, the cement sector. Sectoral funds fail to recognize the role and influence of other linked sectors.
• Now, there are many sectors linked to the cement sector such as the steel and construction sectors.
• Thematic funds acknowledge this and invest in the whole infrastructure industry. This includes all the sectors such as cement, steel, and construction.
• These are all interlinked and hence, there are chances of higher returns and lesser risks.

• Returns beat the market

• The return on investment of the thematic funds has consistently outperformed the market.
• The government policies, socio-economic conditions, and consumer behavior can help you identify the industries that will flourish.
• For example, during COVID-19 lockdowns, it was evident that the medical and pharma industries stood to gain the most.
• The IT industry outperformed as people spent more time on social media for entertainment during the widespread lockdowns.
• Online marketplaces became more popular. The emergence of OTT platforms as online entertainment alternates is another story.
• Conversely, the tourism and hospitality industry has seen a major blow.
• The transportation and aviation industries have also seen negative results.

Is the Future of Investing Sustainable?

The increasing volatility in the markets and the fast-changing circumstances have led to lopsided growth. Some industries tend to grow at a higher pace compared to others. Is it possible to grow your investments sustainably amid aggressive investors?

Yes! It is possible. ESG and industry funds cater to this exact need. ESG funds feature only those companies that take care of the overall sustainability of the organization. These companies recognize the fact that their actions must not harm the environment or society.

Thematic funds are going to be at the core of investors’ portfolios. Your investment objectives define the type of fund you want to select. Easy simple thematic stoxbox equity investing features ready-made quality portfolios called thematic boxes. You can explore these boxes and get the benefits of thematic investing.

Should You Invest?

You must have heard that your money loses its value when it is kept idle. This is because of the inflation prevalent in the economy. As inflation increases, the value of your money decreases. A bank fixed deposit (FD) typically depicts the minimum return you need to earn to grow your money.

Investing in thematic funds can help you earn 5–7 times the FD returns. Now, this is called growing your wealth. Hence, investing helps you build a passive income source along with your main earnings. BP Wealth can help you attain your investment goals and create wealth. You can visit the investment website. You can also access their services through mobile apps on Google Playstore and App Store.