In the fast pacing world, everything around- economy, geo-politics and environment are changing with the thriving of several challenges. In such situations, when thinking about investment planning, according to Warren Buffett written in a report , “a company must invest in the key ingredients of profitability: its people, communities and the environment”. By following this lead, many investors have widened their perspectives beyond the quarterly profits. That’s why in the US the sustainable, responsible and impact investing (SRI) assets grew up to 76% within 2012 and 2014 as reported by survey by US SIF.
The assets controlled by investment firms in view of environmental, social and governance (ESG) issues improved three-fold as per the survey showing. Several US institutional investors as pension funds drew out SRI assets by 77%, and private equity assets along with alternative investment funds considered ESG issues rising 70%. With the improvement in technology and other field, here are some perspective investment trends of 2015.
Trend #1 Direct Investment through Technology
As per the trend, most of the investors prefer to take advantage of the advancement of conveniences, availability and cost savings for investing directly online. In this growing digital marketplace, mutual funds, stocks, bonds, ETFs-all have been swept. In 2014 trend, the individual investors took advantage of investment opportunities with new generation that was previously available only with the large institutional investors and big financial institutions.
Technology facilitates the individual investors to choose the directions of their investment. Investors in the public companies are also getting the facility of online investment rather than wading through the piles of snail-mail. Now DIY investors are able to do their portfolio research on the web and track their investment performance. Not only small businesses and start-up companies, but also big institutions are offering interest paying direct investment plans.
Trend #2 Bonds, Bonds and Bonds
In 2015, the trend is with the bonds that allow the investors to loan their companies’ money, not buying shares. After the rough years of recessions, the aim of the investors is to look for some stable investment options where they will get higher returns than they will receive from the savings accounts or their CDs. As per the Wall Street Journal reported, “The trend shows bond buyers’ increasing comfort that companies will repay them, thanks to rock-bottom interest rates and an economic recovery that, while tepid, is showing signs of renewed strength”. Thus the companies are being benefited by the income caused by corporate bonds.
Trend #3 Investment in Precious Metals
As some precious metals like gold and silver are considered as evade against the currency devaluation, people throughout the world including investors, national banks, the rich class, the middle class and even people with lower income prefer to invest on them, especially with gold. Right now, there is a global gold rush for which the people are choosing the gold IRA as part of their retirement plan in order to secure their lifelong savings. Investing with the precious metals is secure enough as they have great capacity to store wealth and prosperity.