New Delhi: How do Thematic ETFs work? Thematic Exchange Traded Fund i.e. ETF is much discussed among investors. Thematic are ETFs that invest in a particular theme, industry or trend. Thematic ETFs have a more specific focus.
Thematic funds, instead of investing in a broad market index like Nifty50 index, invest in companies related to a particular theme like manufacturing, financial services, environment, social and governance i.e. ESG or electric vehicle (EV).
Thematic exchange traded funds try to deliver returns similar to the benchmark over the long term. But thematic ETFs also come with risks. Because broader markets can be more volatile than exchange traded funds. Therefore, before investing in thematic ETF, understand its risks thoroughly.
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Thematic ETFs i.e. Exchange Traded Funds choose a particular theme instead of investing in broad market indices like Nifty50. Where do Thematic Funds invest your money? What to keep in mind while investing in Thematic ETF? Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
