Introducing Thematic Investing 2.0

I’m happy to announce the launch of Thematic Investing platform 2.0! In India, there are over 3.7 crore Demat accounts. It seems like a big number but in fact, a large portion of them are inactive or dormant. Why? One reason is that most people don’t have the time, patience and expertise to do the required research. After the initial euphoria to invest is over, it’s usually hard to keep up the pace as the markets change frequently and people usually drift away! With Thematic Investing, you will be able to invest in a simple and effective way without requiring to do in-depth research on stocks. In other words, it allows you to invest in themes that are readymade portfolios/baskets of stocks in the simplest way. You can customize the themes to suit your needs. To learn more about thematic investing & how it works, please read this post.

How to get started

To invest in themes, you will need to have a Demat account with us. If you don’t have one, you can open an account with us by registering your details here. You can also refer to this article. Once your account is activated, you can login to Thematic Investing here.

Things to know

  • Dashboard – It gives you an overview of the current investments, your themes and watch lists. It’s where you can get a consolidated view of your thematic investing activity.
  • Overview - Each theme has an overview which explains the rationale behind the theme from a near to long-term perspective. Please note that we do publish any stock flipping ideas to make quick profits as it is not suitable to the target audience using Thematic Investing platform.
  • Stocks & Weights - The chosen stocks in the themes and their weights are given under ‘Stocks & Weights’. You can get details of the last rebalance and also the next rebalance schedule in this page.
  • News & Insights - We also provide news which is syndicated from the major financial news publishers in India such as Moneycontrol, Economic Times, and The Business Standard Etc. The news can include any stock specific information which is relevant to the respective theme or a theme-related news which can affect the overall performance. This is the best place to get updates and other market opinions about the stocks within themes.
  • Version History –You can get find the previous changes made in the theme including updating stocks, description or any other information. This trail ensures that you are in sync with the activity within each theme. It helps you stay tuned in to your investments.
  • Add to Wish List – You can add themes to your wish list from the main widget to buy them later on. Creating a wish list helps you further narrow-down on themes which you are most interested in.
  • Track theme returns – The Index Value, 1 month & 1 year return give you a snapshot of the overall performance of themes. For a graphical view of returns, you can check the chart of returns compared against NIFTY & Gold.

Create your own Themes

In this version, we have given you the functionality to create your own themes too. Using this, you can create themes from scratch and organize them. To create a theme, you will need to select at least 2 stocks. Some features provided:

  • You can give it a unique name.
  • Select a category for a theme.
  • Provide description.
  • Select the Weighing scheme.
  • Select segments.

We provide well-researched themes, not get-rich-quick schemes!

On Fyers Thematic, we provide readymade portfolios based on solid research. Our research team headed by Mr. Gopal Kavalireddi evaluates from a select-list of 250 stocks which have above par to excellent fundamentals, based on quantitative and qualitative parameters. These stocks are most favored, economy-oriented, sector-leading companies with good business prospects and are expected to perform well in the times ahead. Each stock is researched for financial performance based on more than 20 parameters, fundamental performance for business prospects and future growth and, qualitative performance for management and their vision for the company. Our goal is to help reduce your burden and complexity of allocation of various stocks in a theme. Hence, you can pick your broad-based idea and we shall work on cherry-picking stocks for you. The selected stocks are either market leaders in their respective sectors with continued growth or companies which are expected to perform better than their peers over time, due to their robust business models, premium financial status, experienced management etc.  Due to higher concentration of stocks falling under each theme, the risks & returns from thematic investing could potentially be higher in comparison to mutual funds. While research is based on past and currently available information, dynamic changes in regulatory or business environments can alter the outlook of a theme completely. At times, the collective effect can be extremely negative, as a trend change can affect all the stocks in the theme. For instance, sudden downgrades in the debt ratings of IL&FS resulted in a severe liquidity crisis in the economy, thereby affecting the financial services & heavily indebted companies and sectors. Similarly, default or closure of operations of Jet Airways had a serious impact on all the lenders of the company. Investors are advised to diversify their theme selections in order to reduce such unpronounced negative effects, if any. Barring any specific changes which can contribute to the negative performance of a theme, FYERS aims to re-balance or modify themes on a quarterly basis, coinciding with the quarterly results of most companies. Our team will continue to track all changes, provide timely information and re-align the themes as per the schedule so as to keep investors abreast of fluctuations in the performance of stocks. From time to time, we will introduce new themes which offer great growth prospects in the near to long-term. Our research head, Gopal Kavalireddi and the entire team at FYERS are focused on quality over quantity. When it comes to investing, we believe that less is more. We look forward to helping you invest in the best possible way.

In light of the government’s aim of reaching US$5 trillion economy by 2025, we encourage every investor to invest in the right themes and make a definitive commitment to a disciplined investment strategy for the years to come.