In recent years the global landscape has changed a lot, having a significant impact on the economy, this are the common investment trends during the pandemic.
The year 2020 has had an indisputable central character: the pandemic. The year has been momentous, COVID-19 has affected health, society, and the economy and, therefore, investments. Where is it best to invest today? In this article we include the emerging investment trends during the pandemic. As we always say, where to invest is a very personal decision and depends mainly on the type of investor, their goals, and their risk profile.
Read about other investment options in this post
Emerging trends post-Coronavirus
Where to invest? The pandemic has changed the investment landscape considerably, negatively affecting some sectors but positively affecting others:
– When it comes to investment, anything to do with technology translates into positive results. Before COVID-19, we were already in a highly digitalised society, but the pandemic has pushed the technology sector even further, making it an even more exciting field to invest in.
– The health and medicine sectors have been irremediably boosted by the pandemic. Masks, hydroalcoholic gels, medical solutions, etc., have become indispensable goods nowadays, and it is necessary to consider this factor when investing.
– Combining the two previous areas, biotechnology is another emerging trend. The race for vaccines, among many other advancements, makes this sector a more than profitable option.
– Also influenced by the coronavirus, sustainability and social welfare are themes that represent a positive economic trend. Sustainable funds are currently one of the alternatives with the highest rate of return.
– Finally, the forecasts speak in favor of an improvement in house prices. Therefore, without having a total guarantee, the real estate sector is currently positioned as a good destination for our investments.
It is important to remember that the strategy adopted when investing on a specific sector should take into consideration the investor’s profile.
– Long-term funds: one of the best ways to secure your financial future is to invest, and one of the best ways to invest is over the long term; the current situation of uncertainty certainly forces us to think more in the long term, thus avoiding short-term falls or losses at a time when we do not know what is going to happen. However, it all depends on your investor profile and personal goals. While long-term investing can be your path to a secure future, you’ll want to understand the importance of risk and time horizon in achieving your financial dreams.
– Investing in the stock market: Stock markets have been jumpy due to the pandemic; while the future of some companies look positive, the same can’t be said for all businesses. It’s essential to do your research into each company you buy.
– Fixed-term deposits: One of the most interesting options for conservative investors. Fixed-term deposits continue to be the most popular savings product today, even though the returns they offer are quite low. However, the security they offer, as the Deposit Guarantee Fund covers them, and the possibility of accessing other more attractive European options are compelling reasons to opt for this product in 2021.
– Mutual funds: If there is one financial instrument that has gained market share in recent years, it has been none other than mutual funds and ETFs. They aim to replicate the performance of a specific index, are passively managed and are adapted to the needs of investors with a moderate or even risky profile.
Finally, equity funds would be one of the riskier alternatives, but they could get many benefits for the bravest in specific sectors. Cafemutual’s ‘Mood of the Mutual Fund Distributor’ survey, which covered 361 financial intermediaries including mutual fund distributors (MFDs) and registered investment advisers, shows that 38 per cent of the MFDs say their clients have increased exposure to equity funds since March 2020.
The pandemic dramatically altered our attitude to saving and investments. The changes that the pandemic has brought about in the different sectors make it almost essential to have specialised advice that will help to obtain good returns. Contact Altarius; we will help you find the right path for your investments, considering the changes caused by this crisis and the most common investment trends during the pandemic.
When investing, your capital is at risk and you can recover less than the original investment. Please invest aware.