Thematic investments - comparison with other forms of investments

Thematic investments, although similar to industry investments, cover a large number of topics and concern sector operators from carefully selected reference industries. Thus, a health-related thematic fund could invest in pharmaceutical companies, hospitals and nursing homes, insurance companies, medical equipment manufacturers, as well as high-tech and information technology companies dealing with public health issues.

During times of stress, major stock markets can rise and fall at the same time. If we assume that the correlation between the growth and fall of equity is equal to 1, this means that these two parameters compensate for each other; in the period 2007-2010, the value of this index for the main securities markets, except for the Japanese, ranged from 0.77 to 0.99. Thus, a geographically diversified portfolio does not always help to compensate for changes in falling markets. One of the strategies to counteract this situation is to invest in thematic areas rather than according to geography.

The implementation of thematic investments means the creation of a portfolio of shares (or part of it), which includes those companies that operate in areas where a significant increase in value can be predicted in the long term. For example, due to a combination of two accelerating demographic factors, an increase in people's life expectancy and a decrease in the birth rate, the aging of the population has turned into an important economic problem with excellent investment opportunities.

Other areas that can receive strong development are robotics, artificial intelligence, machine learning

Usually funds consist of a portfolio of 40-80 stocks, and often the yield is lower than the potential due to the large spread of investments. On the other hand, in the case of thematic investments, the portfolio usually contains fewer stocks, appropriately selected and focused on an important thematic area, which guarantees higher returns compared to the returns of mutual funds if the trends in the link are positive.

For the American multinational company Fidelity Investments, thematic investments are a matter of disagreement. On the one hand, proponents claim that this is an effective strategy because "they treat investments according to an idea that has not yet been well received and undervalued by the market. Companies working in thematic areas will be able to expect above-average profits, as investors will use their potential, and money will flow into this sector." On the other hand, critics claim that thematic investments "represent a marketing strategy useful only for attracting investors with the aim of making a quick profit, and not a means of obtaining a specific long-term profit.". Moreover, according to these critics, thematic funds harm investors because they often invite them to follow the trend of the moment, and sometimes too late." Starburst is certain to take your fun to a whole new level. The Starburst game will appeal to any online casino slot fan, thanks to its high return to player and regular payouts. This game is a top slot. You can't go wrong with a game as popular as Starburst Slots Online. Besides this, with minimal minimum bet selections, this slot game will appeal to beginner gamers looking for an easy-to-play slot.
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