What is thematic mutual fund?

What is thematic mutual fund?

Thematic Funds are open-ended equity schemes that invest in line with a predetermined investment theme. Thematic investing allows investors to pursue market exposure to specific ideas. For instance, a fund with infrastructure as its theme will invest in companies of sectors like steel, cement, construction, etc.

What is thematic fund?

Thematic funds are predominantly a type of equity mutual funds that invest in companies tied around a well-defined theme across various sectors. For instance, a fund built on farming/agriculture theme might invest in equity stocks belonging to the automobiles, chemicals, fertilizers, core agriculture stocks.

Is thematic mutual fund good?

Sector and thematic funds are known for their higher risk and volatility, which means investing more than 10\% is a considerable risk for any investor. Sector and thematic funds are suitable for those who have an understanding and in-depth knowledge of that particular sector or theme.

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What is a thematic portfolio?

Thematic Portfolios are a long-term investment product which allows you to invest in what you believe could transform the world. Thematic Portfolios are grouped around different promising trends and are composed of exchange-traded funds (ETFs), as well as balancing assets (non-thematic instruments).

What are diversified mutual funds?

A diversified fund is an investment fund that is broadly invested across multiple market sectors, assets, and/or geographic regions. It holds a breadth of securities, often in multiple asset classes. Its broad market diversification helps to prevent idiosyncratic events in one area from affecting an entire portfolio.

What types of mutual funds does Dave Ramsey recommend?

That’s why we recommend spreading your investments equally across four types of mutual funds: growth and income, growth, aggressive growth, and international.

Which mutual fund type is best?

Which mutual fund scheme should I choose? Capital Protection Funds are the best bet for individuals who want to ensure protection of their principal invested amount. Under such schemes, the funds are split between investment in equity markets and fixed income instruments.

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Which sector is best to invest in mutual funds?

Banking has been the most preferred sector for MFs accounting for about one-fifth of the industry’s equity AUM. The sector has grown faster than India’s GDP over the last two decades. The top five banking stocks held by mutual funds include ICICI Bank, HDFC Bank, State Bank Of India, Axis Bank and Kotak Mahindra Bank.

Which funds take positions that are contrary to the market?

Definition: A contra fund is defined by its against-the-wind kind of investing style. The manager of a contra fund bets against the prevailing market trends by buying assets that are either under-performing or depressed at that point in time.

What is the thematic style of investing?

Unlike Mutual funds which provide diversification, thematic style of investing provides concentrated exposure to themes, ideas, events, government policies etc. and invests in related sectors and stocks providing very limited diversification.

What are thematic funds and how do they work?

A thematic fund would invest in a theme like Emerging Technology, secular trends, ESG, outcome-oriented, rural development etc. A single theme may or may not involve multiple businesses from varied sectors.

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What is the difference between thematic investing and sector investing?

Sector investing offers targeted exposure to companies in specific segments of the economy like health care, energy, or information technology. Similarly, thematic investing typically offers focused exposure but, often cuts across sectors to align with a particular opportunity or objective.

Why thematic investing with fidelity?

Explore the opportunities offered by thematic investing to help enhance your portfolio and align your investments with what matters to you. Why thematic investing with Fidelity? Thematic investing enables you to invest in long-term trends or themes.