Thematic investing 101: a beginner’s guide

Thematic portfolios are a type of investment strategy that focuses on a particular theme or trend that is expected to have long-term growth potential. These themes can be based on various factors such as industry trends, societal changes, technological advancements, or environmental concerns. In this blog, we’ll explore the benefits of thematic investing and how to choose the right thematic portfolio for you.

Benefits of thematic investing 📈

1. Potential for higher returns

Thematic portfolios hold the potential for greater returns compared to traditional portfolios, as they focus on companies expected to thrive in the long run. For instance, a portfolio centered around renewable energy may comprise companies specializing in solar or wind power technologies, positioning investors to benefit from the global shift toward sustainable energy.

2. Diversification benefits

Since thematic portfolios invest in companies across different industries and sectors within their chosen theme, they typically offer diversification benefits. This can help reduce the overall risk of your portfolio while still maintaining focus on your chosen investment theme.

3. Alignment with personal values

Thematic investing allows investors to align their investments with their personal values and interests. For example, an investor passionate about technological innovation can choose portfolios focused on companies driving digital transformation, while someone concerned about environmental sustainability can invest in themes supporting ecological solutions.

Choosing a thematic portfolio 🎯

If you’re interested in investing in a thematic portfolio, here are some steps to follow:

1. Choose a theme that resonates with you

Begin by identifying a theme that aligns with your personal values and exhibits long-term growth potential. Consider what global trends you believe will shape the future and which sectors you’re genuinely interested in supporting through your investments.

2. Research the investment approach

Look into how the portfolio is managed and what criteria are used for selecting companies. Professional portfolio managers typically research companies within the theme, looking for those with strong competitive advantages, solid financials, and a history of innovation.

3. Consider your investment timeline

Thematic investing works best with a long-term perspective, as themes need time to develop and mature. Consider whether your financial goals align with a long-term investment horizon before committing to thematic strategies.

4. Monitor your progress

Keep an eye on your portfolio’s performance and how it aligns with your goals. Regular monitoring helps ensure your investments remain on track while allowing the theme time to develop.

Getting started with Beewise thematic portfolios 🌱

Investing for the first time in thematic portfolios with the Beewise investment app can be a great option for beginners. Beewise offers a range of expertly-crafted thematic portfolios that focus on different global trends and sectors. These portfolios are professionally managed and designed to invest in companies focused on long-term growth themes, with ESG (Environmental, Social, and Governance) criteria integrated into the investment process.

By investing with Beewise, investors can benefit from the potential for higher returns and diversification benefits of thematic investing, while also supporting companies that are making a positive impact on society and the environment. The platform offers intuitive tools and resources to help investors monitor their portfolios easily and effectively, with visual progress tracking and clear performance insights.

Getting started is straightforward! Anyone with or without investing experience can begin their thematic investing journey with as little as €10, making this sophisticated investment approach accessible regardless of your current financial situation.