What it is
Thematic investing is putting money in products that focus on a particular trend. Examples of such themes include renewable energy, sustainable development, and artificial intelligence.
While there are investment products (such as pooled funds) that are built specifically for a certain theme, this does not preclude you from creating your own portfolio based on the same or a different theme.
You’ll just have to do research to find products which match that theme. You may find stocks and bonds from companies that highlight the theme in their business.
What it means for you
Thematic investing allows you to put money in trends that are meaningful to you, or in themes that you believe have high potential for growth.
One thing to remember is that you may not always find a lot of products to invest in for a certain theme. This is especially true if the theme isn’t mainstream yet. This would affect how well you would be able to diversify.
