Thematic Advantage Mutual Fund is the concept of investing your money in places where you have the most confidence. If you believe that the technology sector will be hugely successful in the next few years, then the thematic investment strategy will invest your money in shares of technology companies.
Thematic Advantage Mutual Fund
Thematic investment will increase your wealth and make your dream come true. Suppose that the year 2010 has started and Facebook is on the rise in India. You are also active on that site and you think that this company has huge potential. What will you do after this conviction?
You will invest your money in technology companies that have invested in Facebook, when the company went public in 2012. Your investment would have increased eightfold by now. This is the potential for growth in thematic investments. Plus, you’ll be getting rid of clutter you don’t need. You can invest your money in Thematic Advantage Mutual Fund, which is handled by experts in the field and takes care of how your money grows as the market grows.
Theme and Approach
A concept (theme) is a mixture of related fields, shares, intertwined between common ideas and opportunities. This can include any field, such as pharmaceuticals, energy, telecommunications, etc. Shares of related companies in a similar manner. Choosing a theme in general is difficult and challenging for many.
Difficulties in understanding field performance and subtle factors. Lack of time and in-depth study, arousal of emotions, avoidance of bias and most importantly, it is difficult to decide to invest at the right time in terms of tax savings. An easy way out of all these challenges is to leave your decision to the experts and enjoy a good return.
Advantages of Thematic Fund
- Investment in companies on basis of specific theme.
- As compare to sectorial funds this funds are more diversify.
- Thematic fund diversify your portfolio.
- Usually theme funds are high return funds.
Disadvantages of Thematic Fund
- This funds are highly volatile.
- Level of risk is high and it is not for everyone
- Depending entirely on a specific theme.
- Many Mutual fund experts avoid thematic funds.
Top 5 Thematic Advantage Mutual Fund List
| Fund Name | Crisil Rank | 2021 | 2020 | 2019 |
|---|---|---|---|---|
| Invesco India Infrastructure Fund | 5★ | 54.46% | 17.47% | 7.41% |
| DSP Natural Resources and New Energy Fund | 5★ | 44.03% | 11.31% | 4.93% |
| BOI AXA Manufacturing & Infrastructure Fund | 5★ | 50.16% | 27.67% | 2.59% |
| Sundaram Rural and Consumption Fund | 5★ | 18.16% | 14.01% | 3.98% |
| Kotak Infrastructure and Economic Reform Fund | 4★ | 57.13% | 4.31% | 4.28% |
Conclusion
If you want to have a good start to the new year and look to the future, consider the ICICI Prudential Thematic Advantage Fund that has been launched in the market, with the aim of exploring different concepts and opportunities in the field.
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