With the ISA deadline fast approaching, it’s an ideal time for individuals to consider investing in exciting new areas of the stock market and keeping that investment for a period of years rather than months. Over time, some of the areas currently emerging as having potential for decent returns will start to mature and will increase in value.
One of the sectors that has been attracting interest from investors is healthcare. That is a generic heading for an area of the stock market that includes many different companies. The COVID-19 pandemic has illustrated the importance of the pharmaceutical industry, and there are other areas such as biotechnology and robotics that will increase in importance over the coming decades.
Investing in an emerging sector always comes with some risk, and it’s possible that the company currently leading the way may remain dominant and prove to be the long-term winner. However, rivals will challenge it over time, and there may be other discoveries that will trump what is currently available. The easiest way to protect against overexposure to one area while protecting against missing out on others is to invest in a themed fund rather than to focus on the shares of individual companies.
Many healthcare funds are now available and, as with any area of investing, it’s important to weigh up the pros and cons before committing any money. If you would benefit from independent financial advice in Chester, Hartey Wealth Management is here to help.