As per the latest study, the Automation, Digitization, as well as the Artificial Intelligence are the topmost investment themes for the globalized institutional as well as family office investors who viewed the segments determining the economy over the forthcoming decades.
The Bahrain-backed substitute asset manager directed the global survey in partnership with Mercury Capital Advisors, IMD Business School and Banque Pâris Bertrand to device institutional investors’ outlook and discover the economic tendencies powering investment provisions.
Investcorp’s co-chief executive, Rishi Kapoor, further stated that; “Institutional investors’ view of the major trends that are to shape the global economic landscape over the next three decades can give us significant insight into where capital is likely to flow in both the near- and long-term.”
He added that; “While digitisation and AI are areas ripe for investments, the ageing global population and climate change also provide ample opportunities for investors to “capture the economic upside associated with these megatrends.”
About 95 percent of investors positioned these trends as the powering investment themes, shadowed by ageing populations, which was cited by 69 percent of investors. Climate alteration was the third-most emphasized trend, chosen by 65 percent, according to Investcorp’s second annual What’s Next? Investment Tendencies for the Future report.
Within the digitization and AI space, 53 percent of investors stated that they will invest done a blend of both public and private markets, with expressive progress in core industry segments anticipated to take place in about seven years.
According to the IDC Report, the Direct Investments within the Digital Shifting will be nurturing at a compound annualized rate of 15.5 percent along with globally within 2020 and 2023.
About two-thirds of investors stated they assume the ageing population investment tendency to remain significant until at least 2050. It specifies that a funding gap occurs today that offers a long-term investment prospect.
According to the Investcorp study, “Healthcare and retirement services present the greatest opportunity” and investors assume meaningful prospects to arise in that sector within the subsequent decade.”
The report stated that; “Half of all investors polled expect meaningful developments across several industry segments this decade. Over the short term, investors expect the greatest opportunities to be within the renewable energy and clean technology segments.”
Almost all investors assume climate variation to suggestively figure the global economy and investment trends over the subsequent two decades, which is dependable with the global thrust to alleviate climate risks.
More than 60 percent of investors stated they would invest in the influence of climate alteration via both public and private markets, as conflicting to faring one over the other.
Institutional investors also emphasized the evolving dominance of China and the intensifying tendency of investments in central bank digital currencies and cryptocurrencies as investment themes, with a momentous portion of respondents realizing them as trends that are “here to stay and deserving of significant attention and capital allocation.”
Investments in electric vehicles and autonomous powerful was registered by 62 percent of respondents, adapted healthcare by 60 percent, the mounting dominance of China tendency by 59 percent and cryptocurrencies were underscored by 59 percent of investors as investment themes.
Investment in urbanization and smart cities were emphasized by 38 percent of respondents, sustainability and the circular economy by 37 percent, and prospects surrounding the redefining of global trade were highlighted by 26 percent of global investors measured, according to the report.
The core-10 investment trends
- Automation, digitisation and AI (95%).
- Ageing population (69%).
- Impact of climate change (65%).
- Electric and autonomous vehicles (62%).
- Personalized healthcare (60%).
- Growing dominance of China (59%).
- Digital and cryptocurrencies (59%).
- Urbanization and smart cities (38%).
- Sustainability and the circular economy (37%).
- Redefining global trade (26%).
