Five Thematic Investing Myths — Busted!

'Just a flash in the pan,' 'too risky,' and 'liable to close' are just some of the accusations made about thematic funds. But what does the data say?

Ollie Smith 17 April, 2023 | 8:25AM
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Thematic investing has enjoyed an explosive rise in recent years – not least because it allows investors to get excited about specific topics while remaining properly diversified.

But not all the press has been good, and with good reason. Accusations abound that thematic funds are an expensive and risky way of deploying capital, and investors might just be better off investing in sector funds.

As we kick off a special week of content devoted to thematic investing, I'm joined by Morningstar's in-house thematics expert. Kenneth Lamont is a senior analyst for passive strategies research, but don't let the technical title fool you. Thematics is his bread and butter. In this video, he helps me clarify some of the misconceptions about his pet topic.

Watch the video above. A full transcript will be available shortly

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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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Ollie Smith

Ollie Smith  is editor of Morningstar UK

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