Transcript: They are both different. Thematic funds are more to do with a particular theme and not a specific sector. If the theme works, it can do wonders & be very rewarding for investors. However, it is like a gamble. If the theme doesn't work or if you catch the theme at an inappropriate time, then it can be very risky. Investors generally tend to invest in something that has already gone up & not necessarily in something that is likely to go up. To predict and choose a theme which will do good in the future is very difficult.
This article was originally published on May 05, 2017.