Loading ...
Monday, September 05, 2022
Leverage future trends with Thematic Investments
By Century Financial in 'Blog'
Those who saw the potential of the internet before its boom generated massive returns from their investments in this space. Thematic investments involve investing in potentially ground-breaking trends of the future. When these trends materialise as growth booms, the returns from these thematic investments surpass the average returns from most financial instruments like index trading.
Identifying and investing in disruptive innovation of the future could carry great rewards. However, strategically assessing and sorting the trends with the greatest potential of succeeding in the future is crucial to ensure good returns.
What are thematic investments?
Essentially functioning as long-term investments, thematic investments refer to making strategic investments that follow a theme. This theme could be indicative of a potential disruptor of the market in the future. Thematic investments are not limited to single stock but could be a collection of stocks contributing to a foreseeable growth opportunity.
For example, investing in the stocks of various companies researching and manufacturing self-driven cars, companies working on technology that could support self-driven vehicles and companies supplying parts needed by self-driven vehicles could form a good thematic investment fund for those who believe that self-driven cars are going to bring about a structural shift in the way the automobile industry functions.
Why do investors choose thematic investments?
With thematic investments, they are long term plays and doesn’t require frequent montoring as we do with trading, say currency trading. We can invest in the future by investing in the industries we believe in, like renewable energy or electric vehicles. By making such investments, we are contributing the future technology in a small way, supporting innovation while making smart, long-term investments. Most thematic investments today could also be ethical because our investments could steer the direction in which we wish to see the future.
Thematic investments tend to outperform the results from indices trading and other forms of investments when the trend we invested in has successfully created an impact. Though they carry a significant amount of risk, a well-researched investment with complete due diligence could give equally high returns from a long-term perspective.
That's where choosing the right consulting partners can help you understand investments in a more structured manner and equip you with the right resources to become a better investor.
The impact of thematic investments so far
Trading platforms or financial consultancies that indulge in thematic investment options conduct thorough research before offering them as a viable investment product. Historically, thematic ETFs’ hold on the industry assets has been only 2% while generating 6% of its total revenue. Morningstar reported a 186% increase in the amount invested in thematic funds just between 2019 and 2021. The Environmental, Social and Governance sector has been projected to cross $50 trillion by 2025, as per the Bloomberg Intelligence reports.
Parting Thoughts
We can make thematic investments in many ways. We can invest in funds created by fund managers who cherry-pick stocks that can fetch high returns. We can also invest in passive funds like thematic fund ETFs or choose a wide range of stocks that can form a portfolio following a singular theme with the potential of growing significantly in the future.
If you leverage future trends and indulge in thematic investing, ensure that you follow the market movements and stay up-to-date with the latest information that can influence your thematic investment portfolio. Ensure that you choose promising stocks that contribute to a major trend that can reshape an industry in the near future and has maybe even started to show results in that direction.
The content in this blog, including any research, analysis, opinions, forecasts, or other information (collectively, "Information"), is provided by Century Financial Consultancy LLC (CFC) for marketing, educational, and general informational purposes only. It should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any financial instruments.
This Information may also be published across various channels, including CFC’s website, third-party platforms, newsletters, marketing materials, emails, social media, messaging apps, webinars, and other communications. While CFC strives for accuracy, we do not guarantee the completeness, reliability, or timeliness of any content. Any decisions made based on this Information are at your own risk. CFC accepts no liability for any loss or damage arising from its use.
Trading financial products involves significant risk and may not be suitable for all investors. Please ensure you fully understand the risks and seek independent professional advice if necessary.
Please refer to the full risk disclosure mentioned on our website.
Regulated by SCA
Century Financial Consultancy LLC
Reach us:
-
Dubai
6th Floor, Emaar Square Building 4,
Downtown, Dubai, P.O. Box 65777,
Dubai, United Arab Emirates -
Abu Dhabi
27th Floor, Office 2701,
Shining Towers, Abu Dhabi, UAE - +971 (4) 356 2800
- info@century.ae
Disclaimer: Trading in financial products carries substantial risk. Leveraged over-the-counter (OTC) derivatives, such as Contracts for Difference (CFDs) and spot forex, may result in losses exceeding initial deposits and may not be suitable for all investors. These complex instruments do not confer ownership of the underlying assets. Investors should carefully consider their investment objectives and risk appetite, and seek independent professional advice if necessary.
Century Financial Consultancy LLC (CFC) is licensed and regulated by the Securities and Commodities Authority (SCA) of the UAE under license numbers 20200000028 and 301044 to carry out the activities of Trading Broker in international markets, Trading Broker of OTC derivatives and currencies in the spot market, Introduction, Financial Consultations, and Promotion. CFC is incorporated under UAE law, registered with the Dubai Economic Department (No. 768189), with its office at 601, Level 6, Building No. 4, Emaar Square, Downtown Dubai, UAE, PO Box 65777.
The content on this website is provided solely for informational and educational purposes and does not constitute an offer, recommendation, or solicitation to buy or sell any securities or financial products.
Products and services offered by CFC are not intended for use in any jurisdiction where such use or distribution would breach local laws or regulatory requirements.
Alert: Fraudulent Activity Notice
Century Financial Consultancy LLC (“Century”) has become aware of fraudulent individuals and entities impersonating our firm through unofficial websites, social media channels, and messaging applications such as Telegram, WhatsApp, and Discord.
Please be advised:
- Century does not manage investments on behalf of clients.
- Century does not solicit funds or guarantee investment returns.
- Century does not accept or make payments in cash, cryptocurrency, or digital assets.
- We do not conduct business via social media or messaging platforms.
Our only official website is www.century.ae, and all communication is conducted exclusively through verified channels.
We strongly urge the public to remain vigilant, verify the authenticity of any communication claiming to be from Century, and report any suspicious activity. Century disclaims any responsibility for losses arising from dealings with unauthorised or fraudulent parties.
