Do you sometimes feel stressed about rising living costs and the volatility of the current financial markets? Living in a time of such political, economic and social uncertainty can put a lot of stress on you and your future, as you never know what’s going to happen. This is why it’s important to future-proof your finances and make smart investments to ensure that your future is as stable as possible and to secure your wealth in changing markets.

It’s hard to know what is a worthy investment these days with NFTs, crypto and Bitcoin taking over trends about investments and the future of finances. But it’s hard to know whether to trust these online finance investments, as they can also be quite a risk, which you want to avoid. This is why this guide has collected 5 investment trends right now that you can trust and that will last well into the future, so there is less worry about your investments letting you focus on the bigger things in life.

Trend 1- Sustainable and ESG investing

ESG is defined as environmental, social and governance, as it describes investments that benefit the environment and social issues. Sustainability has become a huge part of life nowadays, with companies and normal people making it part of their everyday actions and choices. Ethically, society has shifted to prioritise the environment and nature, opting to save the planet. This is backed by governments and laws now, with new laws coming in every day to help protect the environment. With this legislative shift, companies and businesses are not only ethically obligated, but obligated by law to follow these rules, meaning that financially it’s viable to invest in these kinds of businesses for the longevity of your investment.

Some examples of sustainable and ESG investing are investments into renewable energy funds, green bonds or companies with strong ethical practices, as these are most likely to grow into the future with high potential returns and they have long-term resilience. This type of investment lets you do good whilst growing wealth.

Trend 2- Real estate for the modern world

Property investment remains a cornerstone of smart investment; however, in recent years, the rise in the digital landscape and increase in population have given birth to digital real estate platforms and co-living spaces. The COVID-19 pandemic significantly altered work and lifestyle habits, leading to the widespread adoption of hybrid and remote work models. This shift also reshaped priorities in home searching and consequently influenced housing demand. This has given rise to semi-rural living, the demand for a spare room, and also space that offers co-working hubs and outdoor spaces. 

This allows newer investors to identify these needs and look and invest in unconventional or BMV properties (below market value) to stay ahead of the curve and make as much return on investment as possible. This also gives investments long-term opportunities that can be trusted to bode well long into the future.

Trend 3- Tech and AI-driven investments

The surge in AI usage, automation and data-driven industries over the past few years can highlight sectors that will continue to grow and expand into the future. Robotics, biotech and cybersecurity are sectors that are important to keep an eye on when it comes to investing. To access and invest in these sectors, investors must look for mutual funds or direct equity, as these are the funds that have a direct relation to these sectors. 

It’s important to be vigilant when investing in these industries, however. Many companies and sites will push the ‘next big thing’ in cybersecurity for it to be a short-term fad. It’s essential that you do research into the company’s history to invest smartly.

Trend 4- Diversify through alternative assets

Alternative investments can come under art, collectables and even commodities. The unique thing about these kinds of investments is that they can survive infatuation and market volatility well as their value moves with the economy. To invest in art and collectables, platforms such as Masterworks and Rally are great as they stock rare and high-value artwork. These websites even let you invest in shares of fine art such as paintings by Picasso or Banksy. Alternatively, to invest in commodities such as gold, wine or whisky, platforms such as Vinovest or Goldmoney are a good option. 

Overall, this kind of investment is accessible to everyday investors, meaning that it can be a steady investment for those with all budgets. However, it isn’t devoid of all risk, as items can be stolen, broken and can devalue, so investors should still be cautious. It’s best that investors allocate small amounts to these kinds of alternative investments as they add stability and longevity.

Trend 5- The rise of passive income

Passive income is becoming more and more popular as it is seen as central to financial independence. A few examples of these are dividend stocks, such as investments into blue-chip companies like Apple, REITs that allow you to invest in property without the stress of physically buying, and digital products, which can be books or courses that are sold online without the need for physical inventory.

When investing, it’s crucial to think of long-term income-generating investments that will continue to grow and gain capital rather than short-term investments that die out in a couple of years. Not only are these kinds of investments usually more risky, but they leave you having to search for a new investment opportunity every couple of years, leading to stress and exhaustion. 

Overall, investing in passive income gives you all the benefits of investment whilst allowing you flexibility and freedom so that it can run alongside your daily life rather than overrun it.

Trend 6- Thematic ETFs and Index Funds

Exchange-traded funds and index funds allow you to invest in a basket of stocks or assets of individual companies. These kinds of investments focus on specific trends such as clean energy, AI or emerging markets. The benefits of these are that they spread risk across many companies and tap into emerging industries early on to gain the upper hand. They are also easily accessible through standard brokerage accounts, meaning that they are easy for anyone to invest in, providing great investment opportunities and potential future return on investment, as you are able to invest early on.

Overview

The main goal of a smart investment trend for the future is to be resilient and adaptable. Whilst new and exciting opportunities can be exciting and highly financially rewarding, it’s important to be able to balance them out with some trustworthy and long-term investments. The future belongs to those who plan, diversify and adapt, so start small and think long term.