For retail investors, understanding the fundamentals and broad trends surrounding your investment is a key factor towards the success you have as an investor.
This is where theme baskets can come into play. A basket is a collection of multiple securities (e.g., stocks, currencies, etc.) which have a similar theme, operate in the same sector, or share certain criteria. Investors are allowed to open a position on multiple stocks related to this central theme. Theme baskets, which can typically range from 5 offerings to over 50, are open to trade and invest through spread betting, CFDs, and share dealing and can be customized by each investor.
They are particularly useful for investors seeking flexible access and fast execution on a range of markets and sectors that are well versed. Investing in a group of stocks, such as tech, consumer brands, or pharmaceutical, rather than just a single share creates portfolio diversification, which is a central advantage of thematic investing and the opportunity to benefit from growing trends.
As always there are risks involved in terms of price swings and market volatility, however, that should not detract from the fact that theme baskets can be a rewarding method of investment, an avenue worth and open to exploring for all.
Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.
