One of the main aspects that many investors focus on is the emerging trends associated with the stock market. Many invest in thematic exchange-traded funds based on the latest trends such as electric vehicles, technological advances, and others. These types of ETFs open doors for investors to engage in thematic investing, which essentially point towards benefiting from a particular trend. In this article, we will have a look into what thematic investing is, its features, and its benefits.
In essence, thematic investing is an approach that primarily focuses on the long-term trends of the companies that are associated with specific sectors. This method of investing allows investors to follow a more structured approach and focus on one-off shifts that can change an entire industry. Some of the common megatrends that are associated with thematic investing are rapid urbanization, shifting economic power, climate change, resource scarcity, demographic change, and social change. All of these megatrends are primarily driven by technological breakthroughs.
Thematic ETFs function in a way that is different from other ETFs in that investors who invest in thematic ETFs invest in a basket of stocks that belong to a particular theme. These stocks may or may not be based on a certain index. Some of these ETFs are actively managed whereas certain others are not. You can buy US stocks from India while investing in these thematic baskets.
There are several benefits associated with thematic investing. Let us have a look at a few of them.
With the help of thematic investing, you will be in a position to construct your portfolio based on the ideas and trends that you feel are important for the future. For instance, if you are inclined towards social causes and climate change, you can invest in a thematic bucket that includes companies that are solely focused on these spaces. If you are wondering how to invest in the US stock market from India based on these themes, you can do so in a simple way with Globes by Globalise.
Thematic investing makes it so much easier for investors to make good investment decisions as they are based on key trends. This is in contrast to sector-specific investing that requires a greater level of research and involves more volatility in comparison.
Mutual funds are usually brought up in comparison with thematic investment. While there is a certain degree of similarity between them based on the fact that they typically involve investing in multiple funds, the returns provided are not comparable. Thematic investing can help you gain better returns compared to a mutual fund, as the cost structure is more efficient. You can also buy international stocks from India based on the theme that you are interested in.
Before diving into thematic investments, make sure that you understand the key trends thoroughly so that you can plan your investment strategy accordingly. With Globalise, you can invest in international markets and different themes in a simple and convenient manner. You can also experience several other benefits such as a user-friendly platform, security, and ease.
Many investors find the process of investing in the global markets challenging. With Globalise, it is possible for investors to buy international stocks from India securely and conveniently through our guided global investing app.
With IPO activity surging since the summer of 2020, this momentum continued into 2021 when the IPO market across the globe had one of the busiest quarters.
In this article, we will have a look at how you can invest better with curated baskets and also how to invest in the US stock market from India.