Theme fund, also known as concept fund, refers to a fund that mainly invests in a certain theme or concept industry. Theme funds are not classified according to the global industry standards, but take a certain theme as the standard for choosing industry stock investment according to economic development. Generally speaking, theme funds are divided into two categories, one is industry theme funds, such as consumption theme funds and medicine theme funds, and the other is concept theme funds, such as state-owned enterprise reform concept funds and 5G concept funds.

We can check the theme funds through the websites of major funds. For example, Tian Tian Fund Network has a special theme fund classification to facilitate investors' screening.

Characteristics of theme funds

Theme funds are different from other active funds or broad-based index funds. Theme funds concentrate on investing in stocks of a certain theme or concept, with relatively high concentration of shares, strong periodicity and large fund volatility, which means that the risks and benefits of theme funds are higher than those of ordinary active funds. Therefore, theme funds are more suitable for investors with certain investment experience. If you are a novice investor, you must have a certain risk tolerance before you can try.

When choosing a theme fund, we can focus on several aspects;

1. Pay attention to the news at the national policy level.

Generally speaking, the market will repeatedly speculate on topics related to national policies. When analyzing policy hotspots, we should consider the sustainability of policies and whether the state will encourage development and support for a long time. If so, such a theme deserves our attention. For example, if the concept of 5G is only a short-term hotspot and is not sustainable, there is not much need to pay attention to it. It is likely to buy at a high level, and the peak of the next hotspot is not necessarily when.

2. Industry development space and industry familiarity

If it is obvious that an industry has great development potential in the future, such as new energy vehicles, then you can pay attention to it. Of course, if you know nothing about an industry, don't touch it. Investing in your own cognitive range is an investment concept that must be adhered to. If you don't know anything, how to grasp the dynamics of the market, and how to advance and retreat, you think it is not advisable to follow suit.

3. Select fund managers and fund companies.

Different fund companies and fund managers have their own specialties. For the same theme fund, the management effect of different fund managers may be very different. Choosing fund managers also needs to choose those who have a real understanding and grasp of the theme industry. For example, Glenn, a star fund manager, is a doctor majoring in medical engineering at Northwestern University. The performance of the medical theme fund she manages is very good, that is, professional people do professional things. Only in this way can we win the market.

If you choose the theme fund, you may get excess income, but if you choose the wrong one, you will also face more losses. Risks and benefits are equal and need to be carefully selected.