Impact Feature: What is Thematic Advantage Fund, know from Ramesh Puri, Founder, Divine Partners

Thematic Advantage Funds are mutual funds that focus on investing in a particular theme or sector that is expected to benefit from structural change in long-term macroeconomic trends or emerging opportunities. Thematic Advantage Funds provide the opportunity to capitalize on emerging trends and specific sectors that are ripe for developments.

Although they carry higher risk due to concentration, investors who have a long-term approach and belief in a particular theme or industry may find these funds profitable. It is important to carefully consider the risks and the investor’s own financial goals and risk bearing capacity before adopting a thematic investment strategy.