Yes they both are different.Thematic Investing is a way to invest in a portfolio that includes company shares, rather than individual stocks. Although Thematic Investing may be a new concept, it is still very popular. However, there are many differences between mutual fund investing and thematic investing.
1. Mutual funds cannot be customized, but you can customize Thematic Investing.
2. The expense and charges associated with mutual funds can range from 2% to 2.5% of your investment. If your investment is Rs 1,00,000. INR, you will pay around 2000 to the mutual funds house. However, Thematic Investing is much cheaper than mutual funds. Fyers does not charge for Thematic Investing. Thematic investing has a clear advantage over mutual funds when it comes to fees.
3. Thematic investing allows you to rebalance, redempt or invest at any time. However, in mutual funds, the fate of your money is decided by the Fund Manager.
4. Thematics have fewer stocks than mutual funds, but they have too many stocks.