Thematic investing for 15+ years

I was reworking my portfolio and shifting from 100% MF to 65% ETFs + 35% individual stocks. Individual stocks to be selected basis specific themes I believe to be in play for the next 15 years. Within the individual themes, would be limiting my investment to the top 1 or 2 companies in that sector. Would be helpful to get your opinions on:

  • a) Themes – do they make sense?
  • b) Individual companies in the respective themes (with preference of B2B than B2C companies)–

Themes (and top companies):

1) Urban Infra
a. Public Transportation

  • L&T
  • Adani Enterprises (due to Adani Airports)

b. Commercial Real Estate

  • Mindspace REITs
  • Embassy REITs

2) Social infra
a. Water infra

  • Not available

b. Waste disposal/ Sewage/ Pollution control

  • Not available

3) Solar Energy

  • Adani Enterprises (due to Adani Solar mfg)
  • Borosil Renewables (to be replaced by Vikram Solar as and when available)

4) Logistics

  • Bluedart
  • Adani SEZ

5) Retail

  • Avenue
  • V-mart

6) Capital Goods

  • Johnson Hitachi (well positioned for the PLI scheme)
  • Havells

7) Electric Vehicles

  • Hero Motor Corp
  • Exide batteries
  • Tata Elxsi

8) Healthcare

  • Lal Path labs
  • Thyrocare

9) Agri tech

  • Not available

Other information:
a) ETF distribution:

  • a. 20% NIFTY 50
  • b. 20% Nifty Next 50
  • c. 10% Nifty Mid Cap 150
  • d. 10% SmallCap 50
  • e. 5% Nasdaq 100

b) Not an active investor. Max quarterly rebalancing. Looking at an investment horizon of 15-20 years.

c) Will invest in stocks over the next 6 months. ETFs will continue as SIPs

1 Like

Suggestions for the Not Available ones
AgriTech: Bayer Crop Science, Bharat Rasayan(Insecticide & Herbicide play)
Capital Goods: Why not Include Whirlpool too?
Sewage: Ion Exchange, they have been very good at waste water management

This seems a great idea & good potential long term thematic play.

However, if we consider that you end up investing in all your 11 themes with even 2 stocks each, you end up getting 22 stocks. in the 35% of your portfolio. As you already have substantial diversification due to ETF investing in all varieties.

This may lead to market returns eventually for the overall 100% which you are already getting at from your 65% ETFs portion.

Instead, you can choose fewer themes & stocks to increase the probability of higher returns from the 35% of stocks which I assume can be carefully chosen with decent allocation since you have a 15+ years horizon. So that you get better return than market. (Which I am assuming is your goal of moving 35% pf into stocks from ETFs).

Hope this helps you decide better for yourself.


thanks Rishu. Good reminder. We need to to remind each more often.

by the way, why do you prefer Index ETFs. ??
why avoiding non Index ETFs??
Why not DLF in place of REITs ??

And yes, your planning is interesting :slight_smile:

I think you should reduce the duration to 5 years and in 15 years some sectors will not perform better or their performance will be average.

For water infra, you can look at Jash Engineering … (not a recommendation, but a player in this space)