Thematic funds focus on investing in firms associated with particular long-term trends, aiming for potential alpha returns. They entail a greater concentration risk when compared to traditional diversified equity mutual funds. Therefore, investors must carefully time their entries and exits. It’s advisable for beginners to start with diversified equity mutual funds before venturing into themes. A gradual investment strategy over time is encouraged for thematic fund acquisitions.
How investors can use thematic funds to boost portfolio returns
Thematic funds focus on investing in firms associated with particular long-term trends, aiming for potential alpha returns. They entail a greater concentration risk when compared