Emerging technologies like Artificial Intelligence (AI) and the metaverse are also changing the way people look at investing in stocks. The promises held by such technologies appeal to investors considering the potential they hold. This is where thematic funds come in. They offer targeted exposure to specific themes and trends. These trends include AI, metaverse, augmented reality, and other emerging technologies. In this blog, we will explore the world of thematic funds and what you should consider before investing in them.
Thematic funds deviate from traditional diversification strategies by focusing on a particular theme or sector, like robotics, cybersecurity, or clean energy. They invest in companies positioned to benefit from the growth of that theme, offering investors concentrated exposure to high-potential areas. These funds leverage the expertise of specialised portfolio managers who actively research and select companies at the forefront of their chosen theme.
AI, encompassing machine learning, natural language processing, and computer vision, is revolutionising industries from healthcare to finance. Thematic funds focused on AI invest in companies developing and applying AI solutions, offering exposure to this transformative technology. Remember two important things, though.
The Metaverse, a virtual world where users interact and engage in various activities, presents exciting investment opportunities. Thematic funds dedicated to the Metaverse invest in companies building the infrastructure, software, and content for this virtual realm. However, there are some things you should consider.
Here are some thematic funds that extend beyond these two popular trends, targeting diverse areas.
Thematic funds offer exciting opportunities to capture the potential of emerging trends. However, thorough research, understanding the specific risks involved, and aligning your investments with your financial goals are crucial for informed decision-making. Seek professional guidance to explore thematic funds suitable for your individual circumstances and risk tolerance.