View the entire Frequently Asked Questions (FAQs)
Can I do thematic investing or sector-investing through QuietGrowth Portfolios?
On thematic investing
No, the QuietGrowth Portfolios are not thematic portfolios. Your portfolio will not have deliberate exposure to a long-term macroeconomic theme or trend because it is tough to predict the outperformance of such a theme or trend. Often, most of the future growth of a trend and associated risks are already factored in the current valuation of public companies operating in that trend.
On sector-based investing
Also, QuietGrowth Portfolios are not sector-based portfolios. Your portfolio will not have concentrated exposure to any specific sector based on an expectation that the sector will outperform the broad market indices in the short term. This is because it is tough to predict a specific sector’s outperformance in the short term.
If you adopt the core-satellite investing approach, then QuietGrowth portfolios can serve as the 'core'. You can consider having thematic investments and sector-based investments of your choice as a part of the 'satellite'.
Refer to the 'Thematic portfolios' and 'Sector portfolios' sections in our Investment Methodology page for more information.
Also read the answers to the related questions:
- Can I use a QuietGrowth portfolio as the core of my core-satellite approach of investing?
- How much should I invest through QuietGrowth?
Additionally, you can consider to read the following knowledge resources: