Amid a climate weighed down with uncertainties and financial challenges, the last few years have demonstrated intelligence and resilience by Indian investors who have tightly held on to their existing investment portfolio and not taken panic-stricken decisions.
But now that the pandemic has transformed much of the economic landscape, ushering in a ‘new reality’ that has abandoned the traditional financial structure, investors are now seeking out unique investment opportunities which can offer hefty returns.
Explained simply, creating wealth in leaps and bounds and not storing wealth is the key mantra for millennial investors.
A powerful synergy of technology and financial management has paved the way for some dynamic new-age investment avenues, which are on their way to becoming perhaps one of the most lucrative money-making options in the coming three years.
Funds that invest in environmental, social, and governance (ESG) issues are fast gaining traction across the world. As per the latest statistics, ESG assets will be worth $53 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management.
Globally, governments as well as environmentally and socially conscious young investors have taken strong preference for ESG as an investment avenue as it promises sustainable growth by mitigating non-financial risks for businesses.
Although India currently houses several ESG-themed mutual fund schemes, these have still not gathered steam.
However, given the current environmental crisis, government, regulators as well as institutional investors will undoubtedly welcome investments in ESG-focused funds to ensure long-term sustainable businesses, soon.
These are highly volatile digital currencies that are traded online to make handsome profits in a short time.
Transactions in cryptocurrencies, like bitcoins, as an investment option has grown exponentially in India particularly after the government gave some semblance of legitimacy to these virtual assets following its Union Budget proposal to levy a 30% tax on them.
Cryptocurrencies are currently the riskiest investment option as it remains unregulated globally. However, digital currency is the future (the Reserve Bank of India is also planning to launch one).
Moreover, governments the world over are trying to reach a consensus on how to frame a law to check trading in cryptocurrencies. Once this happens it will only boost further transactions in this asset.
Investing in global stocks is a fast-emerging investment option for domestic retail investors to diversify their portfolios.
Although Indian capital markets are yet to penetrate deeply into the remote areas and expand on the retail base, smart and experienced equity investors are trading in top global stocks either directly or via mutual funds.
Exposure to international companies will be a must-have asset in the investor portfolio for increasing net worth in the long-term as more countries besides the US join the bandwagon to become hot investment destinations in the coming years.
While the above avenues are attractive investment options they are not without substantial risks. Investors are therefore advised to make a detailed analysis of the information available on the assets before taking an investment call.
It is also sensible to go for a long-term investment strategy for optimal returns and at the same time safeguard oneself from market fluctuations.
(The author is Director, ANMI)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
