What is thematic investing and why is it so special?

Thematic investing is just a top down approach which gives an investor complete knowledge about the macroeconomic themes and trends through managed funds and baskets of the related stocks. This is way different then the dividend index.

The Total return indices and this concept are polls apart contributing to similar motive. Now this type of investing in simply done by the investor, he has to choose the theme or the trend which is very profitable according to his analysis.

His investment can be speculative, short term or structural as well, and this could impact the different regions and sectors.

He first makes the list of the possible and profitable stocks that he can invest in and then narrows down the list of the stocks of the particular theme and these are based on various predictions, factors and liquidity, products characteristics and even quality of management.

There are many pros of these types of investing and following are those-

  • Intuitive investing - this is one of the biggest benefits of the intuitive investment; one can put in their ideas and thoughts and analyze everything and only then make an investment. So people who are having in depth knowledge will be benefited a lot from this method.
  • Align your values - One can just simply align your values and work on the themes and trends they are passionate about.
  • Expand their choice - investment with this method is not limited to any industry or particular index, one can invest in absolutely anything of their own choice.
  • Generate Alpha - this can absolutely provide an opportunity to the investors to generate the Alpha.
  • Flexible and transparent - The investors are able to create their very own motifs and one can also get superior quality of transparency and there are no hidden fees as well.
  • Easy - fortunately this has now gained popularity and in the recent years and to democratize access for investors of all sizes.

So these were the n no of benefits one could get from this type of investment in the shares.

Source : https://dividendindex.tumblr.com/post/161191109757/what-is-thematic-investing-and-why-is-it-so

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