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Friday, March 31, 2017

Is Thematic Investment Good?

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
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.

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 Thank you,

With Best Regards

Anand

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