The scope of investments looks very different than what they looked like a few years back. With increasing inflation and the financial structure of economies, investors have become more conscious to invest in sectors that help them grow their money faster than the inflation rates. Investors are interested in keeping their money safe by investing it in more secure options. If you are planning to invest your money in 2023 and are looking for emerging trends, this blog is for you to give you an overview about the future of investment opportunities in the fintech world.
Your investment goals for 2023 should ideally include sustainable investments. More investors these days are looking for investment opportunities in this sector so they can not only earn returns but also give back to the society. Investors who have a set of values to benefit the community and the environment around them would prefer to make an investment which aligns with their mindset and goals. Sustainable investments, as the name suggests, literally give opportunities to the investors to identify and invest in companies that give importance to factors other than financial goals which are environmental, social and governance (ESG) based. Such investors believe that the wellbeing of the community should grow along with their investments. More and more people are becoming aware of the need to add to their surroundings which is why they look for companies with sustainable goals; and when such companies attract more investors, these companies are bound to perform well, benefitting the company as well as the community.
Invest is Digital Assets
Due to the relatively new blockchain technology, a revolution has been made in the world of assets and investing. The assets now have become far safer and more digital which has mitigated most of the issues investors faced with tangible, contemporary assets. The best and currently most popular example of digital assets is cryptocurrency such as Bitcoin and Ethereum. More investors are directing towards such digital platforms to invest along with the traditional options like real estate, bonds and stocks. There are several reasons why investing in digital assets is the new emerging trend and a comparatively safer investment opportunity. Firstly, it is more cost effective as the initial fees of transactions is low while the rest of the costs may vary. Moreover, since the digital transactions are extremely transparent since they are recorded on a public ledger, safe from hackers, open for audits and non-reversible; this makes their security very promising. Lastly, digital assets are also considered the future of investing as the transaction process is smooth and the investor has a greater control over the process as they can review the transaction anytime.
AI and Machine Learning
One of the most quickly emerging investment trends is investing in Artificial Intelligence (AI) and machine learning. This technology has brought about a great revolution in businesses and has the potential for endless improvement and result in bigger and better results. AI is already being used in a variety of industries and for multiple reasons; for creating content, to voice automations, to helping in shopping experiences and fraud detections. As time passes, artificial intelligence is likely to expand its scope and digitize many functions more efficiently than humans. Investing in artificial intelligence makes your investments more likely to grow and the technology advances. As an investor you have the authority to be specific and decide in which industry you want to invest e.g., you might think artificial intelligence in healthcare would get you more returns and maybe investing in artificial intelligence in the retail sector would be more financially rewarding.
This option might not be included in an emerging trend, however, it’s a great investment opportunity. Alternative investments refer to an asset class which cannot be included into the traditional investments category. When we talk about the traditional category, we mean funds, bonds and even cash; alternative investments not being a part of these. However, Alternative investments may include venture capital, art pieces, antiques and also real estate. You must have heard that one shouldn’t keep all their eggs in one basket. Alternative investments provide the investors with an excellent opportunity to diversify their investment portfolio. The primary reason to make alternate investments is that these investments are not related to the stock market so you wouldn’t have to worry about all your money being based on stock market performances. Moreover, alternative investments are passive investments which means that the investor is not compelled to make movements in these kinds of investments and thus doesn’t have to give it too much time to earn returns.
Emerging Global Markets
Investing doesn’t necessarily mean that you have to invest locally. In today’s age, an investor has the world open to them and they have the authority to invest in any economy that they think has potential. Countries like China and India attract investors globally by providing them with multiple investment opportunities. Diversifying your investment portfolio internationally can be a jackpot for the investor if the correct country is identified with a high potential for economic growth. This investment opportunity usually attracts the investors who find their economy unreliable to invest or would also want to use global economic growth to their advantage. Moreover, if you invest in a developed economy, chances are they would have strict regulations and laws for investors which would safeguard your investments. Investing in other countries will also provide you with multiple investment options, some of which might not be available for you locally.
While these are just a few investment options, there is a vast sea of opportunities that you can look into if you are planning to invest this year. However, as an investor you always need to remember that if opportunities have benefits, they also come with some risks which one needs to take into account before making a decision. Also, that investments should ideally be made keeping your financial goals and risk bearing abilities in mind.