Investing in Themes...sensibly
Riding the wave to boost returns
1Winners of the Future
New opportunities emerge due to a unique combination of factors like consumer trends, policy changes, technology disruption, global factors, etc. referred to as themes.
Investing in a theme enables you to invest in companies that will benefit from a trend and thus earn high returns when the theme plays out.
Process on investing in themes @MoneyWorks4me complements Quality-at-reasonable-price way of investing that we use to build your Core+Booster portfolio.
4You can @MoneyWorks4me
You have access to decision-enabling tools and information at MoneyWorks4me which will enable you to invest in themes sensibly.
How it works?
1See shortlisted themes
Explore and select the one that appeals to you.
You will see only investment worthy - green or orange color coded stocks in every theme. Check 10-Year X-Ray to understand each stock better. Check past 1-3-5-9 years performance.
You see equal weight for each stock. However, you can modify the same. Drop or add new ones if you wish. Click on Stocks tab to see the full list of stocks under a theme. Check the amount you need to invest.
Click on Invest Now button and select your broker from the available list. Proceed to complete the transaction. Your portfolio gets update automatically.
Thematic Investing FAQs
How much to invest through themes?
- Core stocks should be about 60 to 70% of your equity portfolio
- Booster stocks + Investments in themes should not exceed 30 to 40% of your equity portfolio
What does thematic investing mean?
5 benefits of Thematic Investing
- Helps to capitalize on future trends. By nature, it leads you to invest in business of the future.
- Reasonably lower diversification than mutual funds which leads to better return.
- Requires a decisive understanding of the impact of all trends leading to better understanding of the businesses.
- Constant focus on trends and disruptive changes in the world, acts as a portfolio hedge.
- A rightly identified theme can generate alpha (excess return over its benchmark).