Index Services has long dominated the investment markets. People who prefer diversity when it comes to investing are moving towards Thematic Investing. The importance of thematic investment is emphasized here.
It is an intuitive investment
This implies that, instead of indulging in something unknown, you can invest your hard-earned money in ideas as well as trends that are completely familiar to you and those that are exciting to you. A good knowledge of the same can give you the opportunity to make smart investment choices. As you do the research yourself, this further makes your position relatively strong. It further improves your ability to customize your portfolio. You can invest in areas that interest you, such as real estate, travel, and healthcare.
You can reconcile your values
Here you get the opportunity to reconcile the values you think are important to you when it comes to your investment. You can easily invest in areas that you have a passion for or those that are primarily focused on social responsibility. You can simply make the world a better place to live with the help of your investment.
You have a huge choice
There are companies that give you a portfolio well prepared in advance if you wish. On the contrary, you have the opportunity to create a portfolio for yourself. There are a multitude of mutual fund options available to you as an investor.
Helps create alpha
Thematic investment is the best way to get the opportunity to generate alpha. If you understand that you are focusing on your investments in hotspots where you can allocate a significant amount of your capital, you can easily generate alpha. By simply analyzing other portfolios, you can make your own decision.
It gives you flexibility and transparency
By simply creating your own portfolios, you open the door to great opportunities. The ability to customize your portfolio is in itself a big advantage. All you need is great visibility as well as control, in addition to transparency with no hidden costs. You will get the clarity of your partial share as well as the penny.
It’s easy to access
Gone are the days when only a limited number of people had access to thematic investments due to the fact that portfolio structures were not only expensive, but at the same time restrictive and complex, which took a lot of time to maintain. Most of them were available to high net worth investors. This is not the case today because it has gained popularity and become available to investors from all brackets.
All in all, this is the significance of thematic investment. If you haven’t explored the boundaries of the same yet, it’s high time you did the same.