Thematic Investing and Thematic Index

Thematic Investing as the name suggests aims on identifying macro-level trends.  Understanding the trend is a major part of any business. Trends can be defined as a sudden or gradual shift in any situation. It may be under fashion, education or styling. Thematic Investing works in this part for your business. It works on those underlying investments that may provide benefits from the materialization of the macro-level trend.

How is thematic investing better than other forms of investing?

Unlike other forms of investing, thematic investing covers a good number of sectors and pick companies that are relevant to this sector and matches the theme. Areas covered by thematic investing.

There are some basic thematic investing areas, these areas include: 

Environmentalism and environmental technology

Gaming

Healthcare

Robotics and automation

Infrastructure 

Luxury brands and

Water distribution

What is the Thematic Index?

The representation of the performance of companies that are associated with any long-term trend or any kind of structural trends that investors are inclined towards in order to gain power or dominance in the market in the future is called Thematic Index. The Thematic Index offers an alternative framework for analyzing the opportunities that are available for investments. It identifies the emerging macroeconomic and geopolitical trend which is structural and transformative in nature. 

Keys to Megatrends

With the change in the trends of the world the investors demand to stay updated with the changing dynamics hence, it is necessary to carefully read and prepare the thematic index and learn about the thematic investment. Some of the key points that may help you create a megatrend or features that are must in megatrends are stay up to the point in thematic objectives: for example, if the thematic index is robotics then the objective of the index should be to study the performance of the benefits from the use of a robot by any company. Have a global coverage. Should be scalable and flexible.

Source:   https://indexcalculations.tumblr.com/post/612452799226216448/thematic-investing-and-thematic-index