The five most prominent trends at present that have a lot of room for growth are listed below.
- Passive Investment and Indexing – In this type of investing, the fund manager will not have any authority. In contrast to active investing, where managers will choose the stocks, passive funds typically follow an index or stock groups. Passive investing still accounts for around 43% of the overall U.S. mutual fund universe. However, its share of the market has been constantly rising since 2015, when it was a bit more than 30%. This rapid increase is due to a surge in index funds as well as ETFs.
- Blockchain – In addition to trading cryptocurrencies. retail investors can engage in the blockchain development, the technology that underlies cryptocurrencies like Bitcoin and Ethereum. Blockchain is basically a chain of data, or “blocks,” that are stored on separate computers and distributed over a network. Every block of data is saved in time on an open ledger that is accessible to people who are participating. This trait makes blockchain technology particularly beneficial in businesses like banking, where safety is a top priority.
- Electric vehicles (EV) – The electric vehicle business is undergoing a significant revolution that has the potential to generate trillions of dollars for the world economy. Almost all prominent manufacturers have stated intentions to expand the availability of EV with a few, such as Jaguar and Volvo, seeking to eliminate vehicles that are powered by gas over the forthcoming decade. The International Energy Agency (IEA) estimates that by the year 2030, 145 million electric automobiles will be in transit, upwards from only 10 million at present. This is actually a 1,300 percent growth. To meet rising demand, most of the world’s top car manufacturers have pledged to meet electrification objectives in the coming years, redesigning their manufacturing lines to produce more electric vehicles.
- Real Estate – This is another investment trend that investors can consider investing in. As per the current Bankrate poll, actual real estate is the favoured long-term investment for citizens of the United States. It is for a good cause, too. Investors have previously preferred real estate for its variety of benefits, as it has minimal associations with securities and bonds. However, there is a substitute for those who want to invest in real estate without putting down a big down payment, which is real estate investment trusts (REITs).
REITs invest in a variety of properties such as flats, commercial buildings, hospitals, boarding houses, retail outlets and much more. Moreover, the enterprises that assist these activities such as monetary creditors and management firms are sections of the group. In order to be eligible as a REIT, firms must allocate at least 90% of their taxable revenue in dividends.
Environmental, Social, and Governance (ESG) Investing – The interruption and ambiguity caused by worldwide epidemic ablaze a revived attraction in investors, patrons and workers to prefer companies that focus on ESG issues. Apart from revenues, these businesses have taken a long-term approach to their operations.