Investment themes for 2024: best things to Invest in right now

The year 2023 was not up to a good start, with the odd wobble like the collapse of Silicon Valley Bank and Signature Bank, and the rescue take-over of Credit Suisse by UBS. However, we are not altering our upbeat approach towards the investing themes for 2024, as the central banks have since announced a coordinated effort to step up and stabilise the recent turmoil.

The launch of our thematic investments initiative in Megatrends illustrates our positive outlook on the investing themes for 2024 – themes that could help you to stay ahead in the investment arena. Our new thematic ETFs focus on Megatrends such as:

• Technological innovation
• Demographic and social change
• Sustainability

We believe these Megatrends are some of the best things to invest in for 2023 and 2024. But what is a Megatrend, and how does it differ from ordinary investment options?

You are probably familiar with thematic investing. Megatrends expand on that concept. They are powerful forces that can bring about irreversible changes to business, economics and society on a global scale. They are good things to invest in because, once underway, they pave the way for irreversible transformations, and getting in on the ground floor of new trends has always been an advantage to investors.

What is the best investment in 2024?

It’s impossible to predict what will be the best thing to invest in right now or in a few weeks or months. But we can suggest an investment strategy that could put you on the right path, which is where Megatrends and thematic investing could be the best things to invest in to make money right now.

Thematic investing in Megatrend funds targets long-term growth and profitability prompted by forces such as the scarcity of resources and demographic change. It is one of the best things to invest in now because you could be able to benefit from the anticipated changes and effects in the long term.

As an example, the growth of the ageing population is bringing about a change in the patterns of consumption, and it also focuses on the need to use scarce resources more efficiently.

Spotting the best stocks for 2024 requires a lot of careful due diligence on the part of the investor, which is why Moneyfarm have created a range of new thematic ETFs. Investing in individual stocks and shares has always been a proposition that carries risk. Going down the thematic ETF route considerably lessens the risk, thanks to the diversity of the portfolios. It could be the best investment plan for you.

The best things to invest your money in

Investing themes for 2024 that revolve around technological innovation can be one of the best things to invest money in, and now is a good time to do so. We are talking about things like digital innovation, disruptive technologies, and innovative industries involved in AI, electric cars, and robotics. Some of these are emerging markets. Although they are still in their early stages, they have the potential to become more disruptive and command more potential alpha or excess returns.

Social change is another area that is attracting more and more investors from people who see SRI investing as becoming more prominent and aligning with their views. SRI investing through ESG funds is one of the popular themes for 2024.

One of the best stocks for 2024, as reported by News By Ai, is Kiplin Metals Inc. (TSXV: KIP – FWB: 17G1 – OTC: ALDVF). According to News By Ai, it is estimated to triple in value this year. But it’s perhaps not one of the safest things to invest in.

We mention it for informational purposes only. It’s a classic example whereby investing involves risk. Even the stock market prices, like those on the S&P 500 of FTSE 100, are subject to change without notice.

Safe asset classes are things like bonds (corporate and government) which offer fixed income. But opting for safety alone means lower returns. In times of high inflation, fixed income is quickly eroded in terms of its real value.

Investing for long-term growth

We talked earlier about the risk of investing being lowered through diversification. Another important factor when it comes to helping to reduce risk is investing for long-term growth. Short-term investments carry an increased risk, even for those who are knowledgeable.

If you want to begin investing, but have little or no idea how to invest money, Moneyfarm can help. Opening a general investment account (GIA) gives you complete flexibility as to the number and makeup of your investment portfolios. Not only will you have total flexibility, but another advantage of a GIA is also that there is no limit regarding how much you can contribute outside of tax wrapper accounts like ISAs and SIPPs. But investment tax is an important issue too.

Before you open a general investment account, it is recommended that you should open an ISA and first use up your ISA allowance. This allowance is currently set at £20,000 per annum. The tax wrapping capabilities of ISAs mean that any growth your investment realises will not attract capital gains tax. Nor will you have to pay income tax on any withdrawals you make.

For this reason, ISAs and stocks and shares ISAs, in particular, are some of the best things to invest in right now – but that’s not all.

Good things to invest in right now include Moneyfarm’s thematic investments

Among the best things to invest in today are Moneyfarm’s thematic investments, whereby you can take advantage of our investment management services.

In any asset class, interest rates or returns can change overnight. With Moneyfarm thematic EFTs, our experienced asset managers are there to make investment decisions on your behalf. Efficient portfolio management is absolutely key.

There are two reasons why many investors are now attracted to our thematic investments and why we believe them to be the best thing to invest in today.

Firstly, we use our thematic portfolios as satellites to your core portfolio. As an investor, you can put a certain amount of your capital into a thematic portfolio based on our assessment of Megatrend investment aligned with your attitude to risk.

Secondly, there is the way we select the funds. We gather them within an ETF in targeted industries and economic sectors, then group them into larger trends, maximising the volatility ratio against potential returns. In this way, our thematic Megatrend ETFs can be considered unique and are one of the best investments for 2024.

FAQ

How can investors manage the risks associated with popular investing themes for 2024?

Investors can manage risks associated with investment themes in 2024 by diversifying their portfolios, investing in multiple industries and sectors, and conducting thorough research before making any investment decision.

What are some of the potential risks associated with investing in themes?

Some of the potential risks associated with investment themes include overvaluation, stock market volatility, and trend changes.

Are the investment themes for 2024 suitable for all investors?

The investment themes may not be suitable for all investors. Some investors have a higher risk tolerance than others, and their risk profile will determine the investment theme they will be attracted to. Investors should carefully consider their risk tolerance, financial circumstance and investment goals before investing.