With 2015 drawing to a close and another about to start, many investors are thinking about where to put their money next. There are number of factors you need to look at before making the decision. Some of the factors you should consider are performance over last few years, economic forecast, interest rate environment and so on. We have looked at these and other factors and come up with some ideas for 2016. Here are some of the sectors we think will do well.
Financials
There is still plenty of demand in the financial services industry. This is expected to remain the case well into next year. Increased lending is expected as well. And this could help persuade more people to back the financial services industry with their cash. This has been one of the bright spots of growth this year, and this shouldn’t lead you to suspicion. It seems like 2016 could be an even better year for financial services, so have a look at what the best investment options in the sector are.
Real Estate
With property prices continuing to rise, real estate investing looks like a good thing to be doing right now. There is no sign that this is going to turn anytime soon, so it could be a great place to invest. And the great thing about property is that you will certainly have demand. There is definitely so shortage of people looking for places to rent and buy. Renting out your property is probably the best move at the moment. But with prices rising, many will be tempted to sell soon.
Technology
After many years of success, the technology industry is still looking pretty safe as far as investments can be safe. It has a very attractive growth profile. And although certain stocks can fall sharply in a short space of time, there are plenty of sectors that remain secure. If you want to take a bit of a risk in 2016, you should think about investing in an emerging technology. Will next year be the year that virtual reality finally makes a breakthrough in a big way? It will make you a lot of money if it happens.
Renewable Energy
One of the biggest areas of growth in recent times has been in renewable energy production. More and more people are choosing to have solar panels and wind turbines installed on their property for personal use. And there is also a great push from many nations across the world to switch to renewables and ditch pollutants. With the success of the Paris summit in recent times, it makes sense to move your money to the renewable industry. It doesn’t show any sign of slowing anytime soon.
Food Industry The reason to invest in the food industry is that it’s a safe investment and always has been. There’s a very obvious reason for that. Food is essential to human life. So, as long as there are people around, there will also be companies involved in the production, packaging and distribution of food. Of course, that doesn’t mean you always make money from every investment. You have to keep thinking about which investments will pay off and which ones won’t. But as long as you do this, you’ll have a good chance of succeeding.
All the above mentioned areas are perfect places for investment but investing properly with due care is the key to getting good returns. Many a times investors are confused and it is not possible to invest in all the sectors at the same time. Taking help from professional fund management companies will always be beneficial as they can provide you with the best advice regarding profitable investments.
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I think renewable energy is the best on this list – and not because I’m some big green energy advocate, but because the government is so heavily invested in pushing renewable energy. If they want it to succeed, it’s pretty much inevitable that it will do so, so you might as well get in on the action.