Actual Question:
Will thematic investing work
In India? Is there a company or a website who helps you invest thematically in
India?
Answer:
Dear Friend!
Thank you very much for raising a provoking question. The
debate will not only benefit you but a great number of others.
Thematic investment and many other such fashionable names
are self-aggrandising innovations of fund mangers to further their personal
prospects, actively supported and propagated by funds to somehow attract
investors.
Picture shows an investor puzzled by various investment themes peddled by mutual funds |
Warren Buffett does not engage in any theme based investment
activity. He simply invests in companies that have a sustainable business
model, growth, and profits; when such investment opportunities come at a
reasonable price. As simple as that.
Every investor can generate significant wealth simply by
either investing a single, one time investment of Rs.1,00,000/- or by
systematically investing, with strict discipline, without fail, a sum of
Rs.5000 to 20000, in a low cost index fund or an exchange traded fund, for a
period of 30–35 years.
My dear friend please realise that time generates the
spectacular wealth and not human intelligence.
Related topics:
- Miracle of Compounding
- What is an Exchange Traded Fund?
- How to Choose the Right Mutual Fund to Invest?