Thematic Investing Will Teach You About Risk

VIDEO: If you can't handle thematic funds at their worst, it may not be worth buying them in the first place...

Ollie Smith 15 April, 2024 | 9:27AM
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Ollie Smith: Well I don't you know? (I'm not saying you should know). Well, I mean, they’re thematic funds, the money could be anywhere.

Sorry. If you've just joined us we're having a bit of an issue because there's millions that’s been put into thematic investment funds over the past few years and NOBODY KNOWS WHERE IT’S GONE.

I am being obtuse, of course.

This is not to say such strategies aren’t legitimate. Au contraire. But, on a serious note, while the promise of thematic investing looms large in the mind of anyone with even a shred of optimism for the future, the risks are also high.

This week on Morningstar, we'll tell you all about it. From the intrinsic risks, to the pockets of outperformance where thematic funds have really shone, we'll help readers delineate between the daring and the disastrous, taking in funds, ETFs, managers, and the underlying themes themselves.

So, to business then. We’re talking water, robotics, artificial intelligence, carbon capture, and, dare I say it, cryptocurrency. I now have to decide which of those things I can do a decent impression of to end the video.

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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