How different is Thematic Investing from Mutual Funds?

In Thematic Investing you are investing in a portfolio of company shares instead of individual stocks. Thematic Investing is a recent concept and not very popular yet but if you compare between Thematic Investing and Mutual fund, there are some differences which makes thematic investing better than mutual fund investing in many ways:

1. You can customize Thematic Investing but mutual funds can't be customized.

2. Mutual funds comes with many other charges and expense which is usually around 2% - 2.5% of the investment. So, if your investment is around Rs 1,00,000 INR, then you are end up paying around 2000 to the mutual fund house. But in case with Thematic Investing it's very low compare to mutual fund. Fyers doesn't charge anything for Thematic Investing. So Thematic investing is winning over mutual funds in the category of fees charged to customers.

3. In thematic investing you can rebalance / redempt / invest at any point of time. But in mutual fund Fund manager decides the fate of your money.

4. Mutual funds have too many stocks in their portfolios, thematic has few.