InvestorQ : Is thematic investing the same as sectoral investing? How can traders benefit?
ishika Banerjee made post

Is thematic investing the same as sectoral investing? How can traders benefit?

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Aashna Tripathi answered.
3 years ago
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Sectoral investing is about investing in sectors or industries as a unit. One can invest in a portfolio of auto stocks, or a portfolio of banking stocks or even a portfolio of IT stocks. One can also do sectoral investing by allocating money to sectoral mutual funds. For example there are funds that are dedicated to sectors like banking, IT, Pharmaceuticals, FMCG, capital goods etc. There is also the facility of buying futures or options on sectoral indices on the NSE and the BSE. However, not all sectoral indices are liquid and that needs to be taken care of. Also, positions in futures and options are not investment positions but purely trading positions

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