Thematic Investing

10 Benefits of Thematic Investing

benefits of thematic investing

What is Thematic Investing?

Thematic Investing is a futuristic way of investing in the stock markets where you can identify large opportunities or invest in your preferred ideas or current trends without having to do detailed fundamental and technical research on individual stocks. Due to the limitation of time and expertise, most people do not have effective equity portfolios in spite of having the right investing ideas. Thematic Investing solves this problem and allows you to invest in over 100 different unique and specialized themes which can give you concentrated exposure in line with your thinking. To learn more about how it works, read this.

Thematic Investing is a platform which you can use to invest in the most effective way possible and in the least amount of time. Since the business environment is a constantly changing one, investing in ready-made themes gives you firepower to focus on larger ideas than delve into the minor nitty gritty which can deter your progress. Make effective use of your time and energy to earn higher returns than mutual funds using our Thematic Investing Platform.

10 benefits of Thematic Investing:

1. Powerful portfolio structure
2. It has compact themes which give you a concentrated exposure to events, government policies, ideas, current trend etc.
3. The diversification is limited and optimal unlike mutual funds.
4. You can earn much higher returns than mutual funds.
5. It is really easy to make smart investment decisions.
6. Themes can be customized based on your preferences.
7. Get 3 versions of every theme depending on your risk profile (High, medium, low)
8. Pay only ₹100 per theme as opposed to 2.5% of investment to mutual funds.
9. It is an intuitive and self-explanatory way of investing in the Indian stock market.
10. It is also an educational experience as you can learn about the business environment.

Using Thematic Investing to construct a portfolio around your ideas:

In our dynamic business landscape, capital flows across the globe are driven by themes

Everyone has different ideas, notions and convictions of the future. Hence, a one-size fits all approach is not the best way to approach investing. What might be a good investment for your friend, may not necessarily be suitable to you. Hence, it is ideal to invest in several themes that you believe will do well in the future. It gives you an opportunity to leverage on your ideas without having to go through the Herculean task of stock research.

You can choose themes based on:
• Social beliefs and causes
• Geographical parameters
• Government policies
• Specific sectors
• Current trends in business
• Business groups and conglomerates
• Dividend strategies etc.

Each of the above categories have several themes within them which you can choose from. They are designed keeping in mind the vast variety of preferences among the investing community in India. It is a good idea to invest in multiple themes. Unlike mutual funds which are mostly generic, each theme is unique and idea-centric. Investing in different themes gives you a very effective diversification. For instance, if you invest in 5 different equity mutual funds you will be surprised that your stock holdings will overlap more than expected thereby having the opposite effect of what you originally intended to achieve. On the other hand, if you invest in 5 different themes through Thematic Investing, you have exposure to different sectors/ideas/trends which will not overlap like mutual fund investments. This gives you a unique advantage: If your convictions turn out to be right, you could make a lot more money than what is possible through mutual funds. So make sure you diversify your investments so that you increase your chances of earning high returns. Using our themes, you can build powerful portfolios which can be easily customized and changed whenever without any restrictions.

How to choose themes:

Although we have over 100+ themes on our Thematic Investing platform, choosing themes is really simple. It’s the equivalent of online shopping when it comes to financial markets space. Keeping in mind the wide variety of parameters that people use to pick investments, we have displayed key information about each theme which help you make the best possible investments:

Index Value – Since we construct new themes based on new events, ideas, trends and popular demand, the Index value show you the base value of the theme from a starting date. Currently, the starting date of all themes is 1st January 2014. It gives you an overall value of the theme similar to Net Asset Value (NAV) of a mutual fund scheme. It makes it easier for you to track the performance of the theme at one glance.

Returns – You can choose themes based on how much returns they have earned in the past. You can sort them by 1 year and 1 month returns. Make sure to double click to toggle successfully.

Sharpe Ratio – It is a measure of risk-adjusted return of the theme. You can analyse the risk-return characteristics of every theme by the Sharpe Ratio. It explains whether the returns achieved in a theme is due to too much risk or smart investment decisions. On our platform, we have given a ranking from 1 to 3, with 3 being the highest rank.

Volatility – In any stock market investment, prices vary and progress is almost never a linear curve. Volatility is a measure of price variations in comparison to the benchmark. A theme/portfolio with lesser volatility is considered safer in comparison to a highly volatile one. But keep in mind that volatility is a result of expectations of investors. Volatility is be good sometimes but not necessarily all the time. A company, theme or a portfolio will have to strike the fine balance when dealing with volatility. An excess of volatility or the lack of it are not desirable.

Trend – Shows you the short-term performance of themes for the last few days. It is useful if you want to know which themes have started trending upwards or downwards in the last one week.

Best Performing Themes – If all this is too much for you and if you want to choose from the best-performing ones, then click on this function to view the top 10 best-performing themes. This list changes on an ongoing basis based on the performances.

Recommended Themes – These themes are further curated based on their overall performance metrics including sharpe ratio, volatility and short-term trend. This list changes on an ongoing basis based on the performances.

Investment Size – Filter themes based on the minimum amount you are willing to invest in a theme. On our Thematic Investing platform, the minimum theme size is below ₹1000. Although there is no upper limit on how much you can invest in a theme, there is a lower limit based on the value of shares and weights.

3 Risk Profiles: To add flavour to the existing customization on Thematic Investing, You can optimize each theme based on your risk preferences. For instance, an investor who wants to invest in a theme but wants to reduce risk can choose the “Low Risk” version to optimize stock weights accordingly. Similarly, if an investor is aggressive and seeks the highest possible return, then he may choose “Maximum Return”. By default, all themes on our platform are equi-weighted which means that all stocks get either an equal or the best equivalent weight in the theme.

Key to successful Thematic Investing:

In order to be successful, you will need to identify emerging opportunities / structural shifts and invest in themes which give you a concentrated exposure to them. It should be an investor’s priority to monitor and assess the potential on a timely basis. Your chances of success will increase significantly if you are familiar with the theme and have conviction about its future potential.

Tejas Khoday

Tejas Khoday

Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.

71 Comments

  • Avatar Rajesh B says:

    I really like the way you have design this platform. I can easily choose any theme I want and invest hassle-free. Thanks Fyers.

  • Avatar R N Swami says:

    Thematic does not allow us to invest an equal amount monthly like SIP. Please bring this feature.

  • Avatar John Bill says:

    Great to see that now we can choose to invest right from the readymade portfolios.

  • Avatar Dolly Wadra says:

    Thematic is really great. You are offering it free of cost. Can you please introduce the virtual trading in this?

  • Avatar Rakesh Gandhi says:

    Thematic investing is the next level of investments in the stock market. I need not actually read the newspapers in deep or focus on any other things to select the stocks and invest. Now I can directly invest by selecting the desired theme I want. Thanks for introducing this.

  • Avatar Radheshyam Patel says:

    It’s great to see that there are no charges for thematic investing unlike others. Good initiative Fyers!

  • Avatar Vikas Singh says:

    Does Fyers charge anything for investing in themes?

  • Avatar Dinesh Chandra says:

    What should one keep in mind while selecting themes for thematic investment?

  • Avatar BJOE says:

    I came to know about fyers from your 30 day challenge.. good one. I am still in profits but 30 days not yet completed.

  • Avatar Jugdeesh Yadav says:

    On what basis on should select themes?

  • Avatar Vivan says:

    Hi Tejas, I came across this after my college friend referred. Can I edit all 100 themes which your research team has created or is it limited only to a few?

    • Tejas Khoday Tejas Khoday says:

      Hi Vivan, Yes you can edit all the themes. The whole point is to allow flexibility of choosing to the end investors like yourself.

  • Avatar Wasim says:

    Can I manage and change the themes to suit my clients? I can pay reasonable monthly fee to FYERS.

    • Tejas Khoday Tejas Khoday says:

      Hi Wasim, Currently the system is designed for those investors who have little to no knowledge on fundamentals. We will make themes customizable in the future. Haven’t even thought about the subscription costs as yet but don’t have any plans of charging as of now.

  • Avatar Rahul says:

    Hope if i buy stocks thorugh fyers web and through thematic.fyers.in the holdings will show seperately?

    • Tejas Khoday Tejas Khoday says:

      Well, if you buy stocks through thematic.fyers.in, it will display in the same portal itself and also in a vanilla list on Fyers Web. Basically, FYERS web will show all your holdings including thematic investments whereas thematic.fyers.in will only show your thematic investments in a list of themes.

  • Avatar Shourya Gupta says:

    Very useful thing your platform is. Will be happy to use it.. Make some videos on it.

  • Avatar Sujit Vasudevan says:

    Can I shift my account from ICICIDirect to FYERS online?

    • Tejas Khoday Tejas Khoday says:

      Hey Sujit, there is no such thing as shifting an account. All you’d have to do is open a new account with FYERS and transfer your holdings and funds to your FYERS account. That’s about it.

  • Avatar Barebones_Jones says:

    How do I know which are the best themes to buy? 100 themes is a big choice but i am a beginner. pls guide.

    • Tejas Khoday Tejas Khoday says:

      Hi, spend some time studying each theme. The platform is designed to give choice and a readymade solution to investors. Beyond that, you’ll have to take the effort of pulling the trigger.

  • Avatar Rajesh says:

    Waiting for reply.

  • Avatar Anuj says:

    FYERS doing many new things and I am happy to know one day when I was visiting someone in office, their receptionist was using ur platform. Sir, but one request is pls get out of IL&FS demat. They are like government company sitting and looting and enjoying.

    • Tejas Khoday Tejas Khoday says:

      Hi Anuj, Glad to know about that. Well, we just will continue to introduce stuff that traders/investors need one by one and expect people to find us.. It’s what we do best rather than spending money on marketing. With regards to IL&FS, the issue is that we are yet to receive our DP license. Yes, I know they are slow and stuff, but they are the largest 3rd party DP and also one of the largest custodians in India. We got to respect that.

  • Avatar Supraja says:

    I got reference about Fyers from my neibhour who is trading daily from his home. I don’t understand much about trading but he showed me this one. HOw to select from so many different schemes? I am not an expert in investing.. just a housewife from Malleshwaram, Bangalore.

    • Tejas Khoday Tejas Khoday says:

      Hi Supraja, We have provided 100+ themes to choose from. Currently, you will have to do it based on your preferences. We’ve laid it out for you and made it as simple as possible. Rather than telling you which one exactly to invest in and when, we leave it to the clients.

  • Avatar Ashish says:

    I am from Coimbatore, how much time it takes to open account?

    • Tejas Khoday Tejas Khoday says:

      Hi Ashish, usually account opening takes about 3-5 days due to the logistics of forms and documents.

  • Avatar Arnav says:

    Good platform for investors!

  • Avatar Jignesh says:

    Good points made by the Macro_guy. I am in full agreement with him and I hae asked this before to support team also

  • Avatar Macro_guy says:

    I am a big fan of macro analysis and I was impressed by your efforts to build such a platform. Only one disadvantage which I found is that you cannot create your own themes. It will be great if you can allow that too otherwise, I can’t change the fixed ones provided by your research dept.

  • Avatar Vidhi_ramesh@gmail.com says:

    Should I give first priority to volaitlity of each theme or returns?

  • Avatar Aniket says:

    I would like to do an internship with Fyers, can I apply for research?

  • Avatar Sharath says:

    Fuckin superb stuff.. just like motif investing..

  • Avatar New_Balance_Trading says:

    Good work!

  • Avatar sangamesh says:

    Why don’t you link both fyers web and thematic in right click option?

    • Tejas Khoday Tejas Khoday says:

      Hi Sangamesh, we want to keep thematic as a seperate platform in itself.. It is more for medium term investors and the target market is different.

  • Avatar Shailaja says:

    Hi Tejas, is it sensible to sell all stocks in one go of one by one? What do you advice?

  • Avatar Abhimanyu says:

    One click i can buy one full theme or do i need to click buy and sell for each stock?

  • Avatar Jigar1 says:

    Today there was a minor issue but support team guy Kishore resolved. So far good impression about FYERS. Pls introduce pivots apart from that it is the best trading platform.

    • Tejas Khoday Tejas Khoday says:

      Hey, glad it was resolved. We’re doing stuff to make your experience better. We’ll tell Kishore. Thx!

  • Avatar Rushub says:

    Pls send mail after updating themes.

  • Avatar Karna says:

    Now I got clarified.. thanks

  • Avatar Urmish says:

    Zero brokerage is good choice for trading, I never knew about th ematic investing b4!

  • Avatar George says:

    is it for short-term or long-term? I am looking for tips in this.

    • Tejas Khoday Tejas Khoday says:

      We don’te give tips. If you are looking for tips then we can’t help you George. We’re trying to educate and provide a great platform for traders/investors.

  • Avatar Suresh says:

    How should I know which themes to buy Tejas Khoday

    • Tejas Khoday Tejas Khoday says:

      Hey Suresh, The platform is a menu of 100+ portfolios. You’re free to choose anything you like. You will need to make your own choices though based on the information provided like returns, volatility, description and relative performances.

  • Avatar Kaarti says:

    Is thematic better than mutual funds if i want to make some 25% return per year?

    • Tejas Khoday Tejas Khoday says:

      Hi Kaarti, of course Thematic investing is the best suited for those looking for higher returns. Mutual funds are meant for a different purpose. They are more for long-term savings and wealth accumulation and to beat FD rates. That’s about it! Thematic Investing can give you much more than 25% if you choose the right themes.

  • Avatar Janardhan Bhatt says:

    Very intersting..

  • Avatar Naman says:

    Hello Tejas !
    What is the difference between Mutual Funds and Exchange Traded Funds ? Please explain in a very simple language..
    Thank You …

    • Tejas Khoday Tejas Khoday says:

      Well, it’ll take me a lot of time to explain this in a comment. I rather write a post dedicated to this. Suggest you look up some articles online. In short, both of them are similar in the sense that they are pooled investments made on behalf of the investors. Secondly, they are meant for those who are comfortable with allowing others manage their investments. ETFs however, is a more fixed/defined product where it is based on a particular theme/index/sector. The stocks within the ETF & weights are chosen by the fund house based on some pre-defined parameters. ETFs are passively managed as they track the indices/sectors. Mutual funds, on the other hand, have more leeway and can change the holdings based on their discretion falling within the mandate. If you found my explanation complex, read a few simple articles online.

  • Avatar jerry pippin says:

    how does one invest? I don’t see a contact number!

  • Avatar Basappa says:

    Very useful platform. Fyers Rocks.. much better because of higher returns.

  • Avatar Sushovan Mukherjee says:

    can i sell my theme with in a month?

  • Avatar Meena says:

    If i have purchased a theme, and i do additional investment in the same theme at a later date, do i have to pay 100 rs again?

  • Avatar Abdul says:

    What will be the DP charges if i sell stocks in a particular theme at a time? Will it charged separately for the scripts or it’ll be charged once?

  • Avatar Sonia says:

    Can i change the quantity of the shares after buying a theme?

    • Tejas Khoday Tejas Khoday says:

      Yes of course. There are no restrictions or lock-in periods whatsoever. If you feel you want to add more or sell existing shares in a theme, you are free to do so.

  • Avatar Rajini says:

    What if i sell a stock in my demat which came when i brought a theme?

    • Tejas Khoday Tejas Khoday says:

      If you sell it through thematic.fyers.in then it will reflect the modified holdings. If you sell it through regular trading (Fyers One or Fyers Markets) then it will not reflect in thematic portfolio. Make sure you sell them through thematic platform for proper record keeping.

  • Avatar Sachin purohit says:

    Do I’ve pay any extra charges for re balancing?

    • Tejas Khoday Tejas Khoday says:

      Any transaction on Thematic is charged a flat fee of ₹100/-. This is regardless of the size. This applies to both, buy and sell.

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