What is thematic investing?

December 5, 2022

Thematic investing is a type of investment strategy that focuses on buying stocks or other assets in companies that are aligned with a specific theme or trend. Thematic investors seek to identify and capitalise on long-term trends or shifts in the global economy, and they believe that these trends will drive the growth and success of certain companies and industries.

Some examples of common themes in thematic investing include:

Aging populations and the growth of the healthcare industry
Climate change and the transition to renewable energy
The rise of e-commerce and the growth of online retail
The increasing importance of technology and innovation in various industries

Thematic investors typically use a variety of tools and techniques to identify and select companies that are well-positioned to benefit from these trends, such as conducting extensive research, analysing market data, and consulting with industry experts. They may also use various investment vehicles, such as mutual funds or exchange-traded funds (ETFs), to gain exposure to a broad portfolio of companies that are aligned with their chosen theme.

Overall, thematic investing is a long-term, strategic approach to investing that focuses on identifying and capitalising on long-term trends and shifts in the global economy.

“Those who know that they are profound strive for clarity. Those who would like to seem profound to the crowd strive for obscurity. For the crowd believes that if it cannot see to the bottom of something it must be deep.” – Nietzsche

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