With Healthcare Sector Growing, Is It A Good Time For Thematic Investment In It?

Thematic investment is strategy that helps investors identify macro-level trends and put their money in businesses and products that are likely to benefit from those trends

We often hear investors discussing a particular sector doing better than others or the possibility of it doing better in the financial market. Yet, most of us fail to take the initiative to make the most of that market sentiment. It's because most people are unaware of the concept of thematic investment. Consider this: When a sector does great, the products and services associated with it also perform better. For example, the healthcare sector, despite some losses, has been showing good potential as the demand for allied products and services has skyrocketed amid the pandemic. Experienced investors are always on the lookout for such potential rallies. When they foresee a favourable situation, they put their money into stocks and funds associated with the sector — like for the healthcare sector it would be pharma companies, hospital chains, health insurance firms, nursing homes, and traditional medicine and healing centres — hoping they will yield a good return in the near future. What is thematic investment? It's an investment strategy that helps investors identify macro-level trends and put their money into businesses and products that are likely to benefit from those trends. Thematic investment requires investors to take advantage of shifts in market conditions by successfully predicting those shifts in advance. A person with a great foresightedness makes for a good thematic investor.