Funds typically withholds a range of opportunities that enable you to spread your risk and avoid having an “all your eggs all in one basket” scenario. It spreads risk and helps you to diversify.
Why are innovative funds better than your standard fund?
Being innovative and adapting to the times is our core mantra in 2021. After a year of overwhelming change for us all, it shows what markets can stand the test of time amid a global economic downturn. In an age of revolutionary technology – keeping your finger on the pulse is key to a successful investment.
Teoh Capital, a private equity company in Melbourne, states that although emerging markets and innovative funds may come with added risk, it’s about successfully managing the risk that can help you succeed as an investor in the 21st century.
Fund #1 – Fintech
Fintech or financial technology is one of the UK’s strongest start-up sectors. You can invest in innovative fintech funds with companies such as Augmentum Fintech [1] and
Even BlackRock – one of the world’s largest investment management companies by AUM.
The Global Fintech Market was valued USD 5504.13 Billion in 2019 and is expected to grow at a CAGR of 23.58% during the forecast period. The key factor for the growth of the fintech market includes high investment in technology-based solutions by banks and firms.[2]
Funds investing in the fintech trend largely outperformed the market in the first six months of 2020, according to research from AltFi. [3]
Fintech’s secular long term growth story may well continue to boost returns, even as the downturn in the real economy begins to bite. [3]
Fund #2 – Electric Cars
Research shows that electric cars are better for the environment as they emit fewer air pollutants and greenhouses gases than petrol or diesel cars.
In the UK, 2020 was a record year for electric vehicle sales, according to data from the trade body SMMT, which said the sector was looking to a green recovery from poor overall sales. [4] The demand is high for an eco-friendlier economy since the law in place that intends to ban all sales from diesel and petrol car sales by 2030.
Launched in December 2019, Ninety-One Global Environment is a global equities fund that has a unique approach of only investing in companies that are contributing to the decarbonisation of the world economy, including electric cars. [5]
Investing toward ESG (environmental, social and governance) is favoured more so by younger generations and the hype around electric cars and specifically, investment funds granting you exposure to these areas is seemingly popular with investors.
Fund #3 — Cannabis
Investing in the medicinal cannabis industry is also considered an ESG investment due to its potential to transform lives with cannabis therapy, and it’s becoming more widely known and appreciated around the globe. The legal cannabis market is projected to be worth $84.0 Billion By 2028 | CAGR: 14.3% [6]
JPD Capital is a medicinal cannabis fund-vehicle offering a range of different pre-IPO opportunities across the supply chain working underneath its corporate structure. These brands range from a CBD cosmetic and wellbeing brand Eresos to genetic cloning and cannabis supplier Tetra Global. These individual companies underneath the JPD Capital umbrella grant investors exposure to a range of high growth opportunities within one sector.
Investing in private equity, pre-IPO opportunities, particularly in an innovative fund like JPD Capital places you ahead of the curve before listing on the stock market and therefore likely to multiply your initial investment.
Visit JPD Capital to learn more: https://www.jpdcapital.com/
References:
- https://augmentum.vc/
- https://www.globenewswire.com/news-release/2020/12/17/2147264/0/en/Global-Fintech-Market-Report-2020-2025-Competition-Forecast-Opportunities.html
- https://www.altfi.com/article/6783_how-fintech-funds-have-performed-in-2020s-coronavirus-market
- https://www.theguardian.com/environment/2021/jan/19/global-sales-of-electric-cars-accelerate-fast-in-2020-despite-covid-pandemic#:~:text=In%20the%20UK%2C%202020%20was,combined%20market%20share%20of%2010.7%25.
- https://www.fundcalibre.com/three-ways-to-invest-in-electric-vehicles-over-the-next-decade
- https://www.grandviewresearch.com/press-release/global-legal-marijuana-market