Thematic advantage funds are mutual funds that focus on investing in a particular theme or sector that is expected to benefit from long-term macroeconomic trends, structural changes or emerging opportunities. Thematic advantage funds provide an opportunity to utilize particular sectors poised for emerging trends and developments. Though 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 beneficial. It is important to carefully consider the risk appetite and the investor’s own financial targets and risk bearing capacity before adopting a thematic investment strategy.
