While fixed deposit rate is currently at its all times low, people are looking for ways to put their hard-earned money into some assets to generate better return than fixed deposit rate. Below are my thoughts on the sectors to be invested in 2021:-
- Communication technology sector: We can never deny the effect of the technological advancement on our daily life now. Imagine how much time we spend on social media every day. Imagine how we frequent we make comments or read news online than a decade ago. Imagine how frequent we use our computer for our learning, work and banking. If you spend more time on technology applications, so do everyone in the globe. Companies in this sector worth considered to be invested in will be social media platforms, 5G technologies, software companies, companies which produces chips, hardware that support the application of technologies.
- Revolutionary technology sector: Human is constantly looking for ways to do things better. We are also relying more on machines to help us on our daily task. This sector includes companies which are focusing on robotic, artificial intelligence and block chain.
- E-commerce platforms: Due to COVID-19, our shopping patterns have been transformed from physical to digital. Previously, many elderly people do not shop online, however, now most people including the juniors and the seniors are learning how to buy things online. Companies which focus on online shopping shall have better advantage and worth to be considered in your investment portfolio.
- Healthcare sector: We desire more healthy lifestyle and beautiful looking than ever before. Hence, biotechnology sector shall be treated as one of the important sectors to be invested in. Companies which focus on anti-aging, promoting healthy diet shall have better prospect than fast food companies. My focus now is not on COVID-19 vaccines producers but more on long term health care companies that focus on better health solutions.
- Energy saving sector: Environmental issues like pollution and greenhouse effect have been affecting the earth and human for a long time. Energy saving in recent decade becomes the attention. Companies which focus on energy saving like fuel consumption reduction, promoting solar energy, electric cars shall be the investment target too.
While technology-based companies might be over-valued at the moment, one shall consider the company’s long term sustainability and its competitive advantage against its competitors while selecting it within your investment portfolio. One can consider looking for small to mid-cap companies rather than big-cap to capitalize on their potential in long term growth. The potential of big-cap companies are mostly being captured within their share prices and hence not cheap to be invested in. For those who have limited time on single companies and are looking for fund managers to help them manage their funds, please contact me for recommendations of funds that focus on the above.
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