New York, USA, May 5th, 2023- OANDA, a leading online trading and investment platform, is proud to announce the launch of its latest investment offerings aimed at expanding portfolio diversification opportunities for its clients. The new offerings are part of OANDA’s ongoing commitment to providing its clients with access to a wide range of investment options to suit their needs and preferences.
Investment is the easiest and fastest way to grow wealth and achieve financial stability for the future. Investing in stable assets, projects, or industries ensures that investors can have returns for a long time. Relying on one investment, however, is a risky way to grow wealth as it leaves the investor vulnerable to market changes and fluctuating prices.
Whether an individual invest via platforms such as MetaTrader4 or through financial services firms, understanding the goal of diversification is vital to getting the best returns while keeping the inherent risks of investment minimum. Here are some of the top and latest investment opportunities to consider for portfolio diversification:
Renewable energy
Renewable energy investments are part of sustainable (socially responsible) investments, which consider the impact of investments on the environment. The renewable energy industry has grown in the last decade as researchers and investors work towards finding technologies and solutions to reduce the global carbon footprint without reducing the quality of life.
Renewable energy investment is a smart way to diversify a portfolio, spreading investments across products and solutions designed to bring renewable energy to everyone. This may include investment in renewable energy research, solar systems on repayment plans, and electric vehicles to benefit from the multibillion-dollar industry.
Alternative investments
Alternative investments such as private equity and hedge funds are popular with financial institutions and high net-worth individuals, but retail investors may also pool funds to engage in them. Alternative investments typically provide significantly higher returns than traditional investments, a good reason why they are used for growing wealth.
But they are also more complex than traditional investments and often need professional managers with a high level of expertise to make a success of them.
Real estate
Real estate investments continue to rise despite the fluctuating economic conditions; many still consider real estate one of the top ways to build wealth. Some of the REITS returned up to 16.97 % in 2022. Real estate provides rental income and value appreciation and could be a hedge against inflation.
Investors can choose from private equity, publicly traded equity, private debt, and publicly traded debt for real estate investments.
Financial trading
Financial trading involves buying, selling, and exchanging assets in a marketplace. There are different financial markets, such as forex, crypto, and stocks, with the forex market being the largest. Cryptocurrency investments increased in the last decade as many investors switched to Bitcoin as a hedge against inflation. There’s the question of the advantages of Bitcoin against gold and traditional investments, but they offer the flexibility to diversify investments. The ease of trading any market is an added advantage for investors with a smartphone or computer; they can start trading with brokers within a few minutes.
Exchange-traded funds (ETFs)
ETFs allow investors to track the price of an underlying index with the potential to lower investment risks and diversify portfolios. The SPDR S&P 500 is the oldest ETF with many investors. ETFs offer investors the flexibility to diversify their portfolios and lower investment costs and tax benefits. A wide range of ETFs exist, but investors consider previous performance, exposure, and access when investing.
Art and collectibles
Investing in art and collectibles is a time-tested way to diversify investments, but the associated risks make this method unfit for many. Although art and collectibles are often valuable investments, their low liquidity means that investors may need help getting their assets. The associated risks, such as theft and damage, also increase the disadvantages.
These issues are addressed by NFTs, digital art, and collectibles, but the volatility of digital assets makes NFTs unfit for investors who prefer traditional investments. Still, NFTs and physical collectibles offer flexibility in investing.
Micro-investing platforms
Technology-driven investment solutions such as micro-investing platforms allow retail investors to save, invest, and manage their portfolios using apps that work on mobile devices. Such apps bring investment opportunities to investors so that they can invest stress-free. Investments are arranged by industries, ranging from agriculture to real estate and even stocks. Micro-investment platforms also offer hedging options, allowing investors to preserve financial value during depreciation.
Biotech and healthcare stocks
The stock market offers investors a plethora of stocks to invest in. Biotech and healthcare stocks have performed well over the years, but more in recent times due to various health challenges and innovative solutions. Biotech companies are at the forefront of medical innovation, supporting medical advancements and potentially earning significant returns for investors.
Investing in health and biotech stocks effectively diversifies a portfolio, spreading risks and getting into a prime position to earn massive profits.
Commodities
The commodities market has gone through various market conditions in the last decade. Changing energy, precious stones, natural materials, and food prices opens many investment opportunities for investors looking to diversify. Although political and economic factors primarily influence the price of commodities, the natural supply and demand maintain market emotions halfway between greed and fear.
Spreading investments across precious stones, energy, and food materials may involve professional advice for the best performance.
Gaming and esports
Investments in gaming and e-sports have also increased recently, thanks to emerging play-to-earn platforms, global competitions, and online gaming spaces. The esports market was valued at USD 1.39 billion in 2022, with a 16.7% CAGR growth rate forecast until 2030. The industry is expected to grow faster, thanks to modern technologies.
This makes the gaming and esports niche attractive to investors considering new and fast-growing investment opportunities; with over 3.09 billion active games globally, the industry is poised for such growth.
Technology
AI, cybersecurity, and fintech investments are trendy thanks to the increased use cases across various industries. Using AI to gather and process data, analyze markets, automate processes, and ease work burden makes AI investments valuable. Given the increased rates and size of cyber threats and attacks, cybersecurity stocks are also poised to perform.
About OANDA
OANDA is a trusted global provider of financial services, offering innovative and award-winning trading platforms for forex, CFD, and precious metals traders. Founded in 1996, OANDA has become one of the largest online currency brokers worldwide, with over 11 million customers across more than 190 countries.
The company is committed to providing an exceptional trading experience through its advanced technology, competitive pricing, and reliable customer service. With access to more than 160 currencies around the world and low spreads as low as 0.2 pips on major pairs, OANDA offers ultra-competitive pricing that helps traders maximize their returns while at the same time minimizing risk exposure.
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