Thematic Funds Can Generate Alpha But Know The Risks And Keep A Long Term

The fifth edition of the investor awareness and education webinar, spearheaded by Mirae Asset Mutual Fund and powered by Outlook Money, was on what thematic funds are and how should investors approach them. In conversation with Nidhi Sinha, editor, Outlook Money, was Vaibhav Shah, head – Product, Marketing and Corporate Communications, at Mirae Asset Investment Managers (India) Pvt Ltd. Here are the edited highlights of the discussion: What Are Thematic Funds? A thematic fund invests in a combination of many sectors. For example, in the banking and financial services theme, you would have various segments which such as banking, NBFCs, insurance, mutual funds, broking and wealth management. A banking sector fund, on the other hand, will only invest in banking stocks. A thematic fund invests in businesses which are ancillary and work within the same space. Thematic funds work on a...