Megatrends
Megatrends impact the entire world and create new investment opportunities.
What are megatrends?
Megatrends are fundamentally and sustainably changing the world
Our world is developing more dynamically than ever before. It’s impossible for anyone to predict exactly how the future will look. However, there are some emerging developments that have the potential to fundamentally change the world in a lasting way – so-called megatrends. Megatrends affect more than just a few specific areas: They have an impact at all levels of society and on individuals as well.
Megatrends don't just affect a few specific areas, they impact all levels of society, including individuals. To keep up with the future, companies need to quickly respond to these developments or ideally anticipate them. Companies that achieve this are of great interest to investors because they represent future viability and growth.
Megatrends not only provide an indication of what the future may hold, but also consistently create new investment opportunities. Characteristic aspects of megatrends include:
Long-term growth: Megatrends affect all levels of society. Companies that either anticipate these trends or can react to them quickly offer potential for long-term growth.
Innovation: Megatrends offer the opportunity to invest in innovative companies that focus on pioneering topics.
New business models: Some megatrends, such as AI, offer the potential for entirely new business models.
There are multiple, often interconnected megatrends: demographic change, climate change and technological change. These three megatrends also encompass a wide range of promising subtrends:
Demographic change is an inexorable reality that entails both challenges and opportunities. The spectrum of subtrends in this segment ranges from themes such as ageing and work-life balanceto urbanisation and many other areas, including smart food, animal well-being, and telemedicine.
Climate change requires urgent action in order to stop or slow global warming. More sustainable and environmentally friendly agriculture and food play a major role here, but are also important themes in their own right, particularly investments in green technologies and renewable energy. In addition to the latter, electromobility, energy efficiency, water scarcity, and plastics and recycling are key subtrends.
We are confronted with the megatrend of technological change particularly often in our day-to-day lives, and last year alone, one subtheme was of particular interest for investors: artificial intelligence(AI). The digital revolution is changing our world at a pace that has never been seen before. Some technology companies are taking on key positions because they operate in especially lucrative fields. Current promising subtrends in this area apart from AI include cloud computing, 5G, cybersecurity, gaming and streaming, semiconductors, and automation.
More details about the megatrends
How can you invest in megatrends?
When is the best time to start investing?
Now! Because fund prices fluctuate based on market movements, you acquire more fund units for your regular deposit in some months and fewer in others.
Is there a minimum commitment period?
No, there is no minimum commitment period for funds, but there is a “recommended minimum holding period”. This is based on the price risk of the given fund and provides a point of reference for how long your investment horizon should be in each case. Price fluctuations and capital losses are possible even if the recommended period is observed.
Full potential only unfolds over the long term
Investors need patience, because – by nature – megatrends progress slowly and only exhibit their full potential over a longer time frame. Consequently, in order to achieve the best possible returns it is important to have both an adequately long investment horizon and patience for the long run, in order to outlast the weak phases on the markets that are always bound to occur at times.
You too can invest in megatrends with these investment funds:
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A golden age for healthcare equities?
Healthcare equities are regarded as "defensive" (i.e. less dependent on economic cycles) investments. However, anyone who equates this with boredom or even lower return opportunities is completely mistaken. The fund Raiffeisen Health and Wellbeing ESG Equities has been unlocking the return potential of the healthcare sector for investors who are willing to accept the risks associated with equity investments for many years – and it does so sustainably!
Sustainable, digital, and active investment in infrastructure equities
Equities in the infrastructure segment cover virtually the entire spectrum for investors: from promising, but unprofitable start-ups to innovative technology companies experiencing explosive growth to supposedly boring, but highly profitable firms.
Investing smartly in the energy transition - new upturn in sight?
The global energy transition and the ever-increasing demand for energy are among the defining megatrends of this century. It makes sense to invest in these topics of the future. But as is so often the case in life, the "how" is at least as important as the "what".