Thematic investing: Is this suitable for you?
I was first introduced to the concept of thematic investing about 10-years ago through the Motif platform, a small fintech player that specializes in bringing thematic investing to the retail masses. I wasn’t eligible to sign onto their platform which is predominantly for US investors but I was following some of the thematic portfolios that were created on the platform.
Alas, early this year, Motif Investing announced their plans to officially shut down in May 2020 after 10-years in the business, with clients’ portfolios being transferred over to Folio Investing.
Thematic Investing, in a nutshell, involves creating a portfolio by gathering together a collection of companies involved in certain areas that you predict will generate above-market returns over the long term. Themes can be based on a concept such as aging populations or a sub-sector such as cloud computing etc.