Thematic investing is a great way to invest in things you are passionate about. You can choose economical, social and political themes with long-term potential and that really attract your interest. Thematic investments are more concentrated than asset class or sector-based investments. Yet, they are also more versatile and broad-ranging because they can span various stocks, assets and industries.
While factor investing is historically based, with investors analyzing past trends to make their decisions, thematic investing is more forward-looking. It aims to capitalize on developing social, political and economic trends, with investors always looking to the future to predict where these trends will take them and their money.
Powerful portfolio structure
With thematic investing, you can construct your portfolio based on your ideas about the future trajectory of those trends that grab your attention and interest – the things that really matter to you. For example, you can construct portfolios by drawing on social causes, geographical parameters, government policies, current business trends and projected future developments, and more. The thematic approach gives investors and fund managers a great deal of freedom and versatility in making their investment decisions – provided they are prepared to do the necessary research and groundwork.
It is really easy to make smart investment decisions
Thematic investing makes it easier to make good investment decisions, as opposed to sector-specific investing. Thematic investing is best undertaken by investors with a good knowledge of the businesses and trends in question. As a result of the extensive knowledge, the investor has various attributes of their own portfolio. As a result, it is much easier to make informed, successful and profitable decisions.
You can earn much higher returns than mutual funds
Since thematic investing puts the investor in a better position to make sound decisions and work with funds, businesses and stocks of genuine interest, it provides far greater potential for great returns than you might get from a mutual fund or any other investment vehicle.
Nour Private Wealth (NPW) Wealth Advisors are experienced with knowledge spanning all fields of global investment and the various approaches to it. For more information on the benefits of Thematic Investing or any questions regarding the protection and expansion of your wealth, contact us at 1.855.545.9090 or by clicking the following link: https://www.npw.ca/contact-us/.