Mutual Funds Day 25: Thematic Funds
My personal favorite among the equity funds are the thematic funds. Themes are stories that play out over a period, say 10 years. If you are not that knowledgeable in stocks, jargon, or the technicals — you can still make a killing if you guess the sector right.
It may take patience for something to be uncovered, but when it does — these thematic/sectoral funds will outperform. A few of the themes that played out in the last 10 years were:-
- Plastics
- Banking and Fintech
- Supply Chain and Logistics
- Information Technology
- Infrastructure
- Electric Vehicles
- Alternative fuels & Green energy
If you guess the sector right, the best way to invest is via mutual funds. The reason is that the holding period is 7 to 10 years and there is every possibility that the stock you are planning to purchase now may not be even a performer after 5 years. MFs do the occasional rebalancing, remove the losers, and add on to the winners thereby protecting your capital for the long haul.
Examples
https://viswaram.com/mutual-funds-day-26-debt-funds-a62d2ffbc3da
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