Some Stories Don't Have a Happy Ending

Editor's Views: Thematic funds are easy to understand and tell compelling investment stories, but beware of The Next Big Thing becoming a yesterday's fad

Holly Black 21 May, 2021 | 11:15AM
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Whether you’re a Harry Potter fan, a Lord of the Rings buff, or prefer to get stuck into an autobiography – we all love a good story. And this is true not just of book worms and moviegoers, but of investors.

The appeal of thematic funds is easy to understand – these funds don’t bamboozle us with talk of spreads, ROI, P/E and duration, they tell us a story and often one we can relate to. They speak to us of the rise of the robots, of the world’s ageing population, or the global shortage of water. These are stories we know to be true, and which affect our lives. It makes sense that we would want to find the investment opportunity within.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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