Three opportunities to enhance your portfolio in 2021
From renewable energy to micro-investment apps, three wealth experts share their predictions for the best places to invest your money
For investment opportunities, 2020 was certainly a volatile year. Commercial real estate went down, Bitcoin shot up and, thanks to social media platforms such as Reddit, investment strategies have never looked so complicated.
Understandably in 2021, investors are looking for safe havens to weather out the storm caused by the Covid-19 pandemic.
Rebecca Robertson of Evolution Financial Planning warns: “Get rich quick schemes that sound too good to be true, usually are. If you’re to test a market or opportunity, you should only do it with around 1-3% of your overall investment portfolio”.
In 2021, if you do have money you want to invest, have a read of what these three experts have to say on where it could go — each one a modern idea.
1 RENEWABLE ENERGY
Chris Beauchamp from trading platform IG says: “Electric vehicle firms have been much in focus, and Tesla’s admission to the S&P 500 is a sign of its growing respectability, but there’s more to be done in terms of adoption of both cars and power sources.”
For more sustainable options, newly launched platform Clim8 invests into various sectors fighting climate change.
2 ALTERNATIVE INVESTMENTS
“According to our 2020 Cask Whiskey Buyer Report, 89% of investors want to spread risk with 40% turning to alternatives to do so,” reports Jay Bradley, founder of Whiskey & Wealth. “These include alternative investments such as art (31%), antiques (28%), Scotch or Irish cask whiskey (55%) and wine and watches (both 24%) to hedge against the volatility of the financial markets.”
3 RESPONSIBLE WEALTH BUILDING
Paul Delaney, head of partnerships at automatic savings app Chip, advises: “At the moment, all the noise continues to be around highly volatile day trading. I’d argue this is not the way to start investing. Instead, look into responsible wealth building and investing in a diversified portfolio every month. Think in years, not days or weeks.”