What are megatrends?
Megatrends are fundamentally and sustainably changing the world
Our world is developing more dynamically than ever before. It’s impossible for anyone to predict exactly how the future will look. However, there are some emerging developments that have the potential to fundamentally change the world in a lasting way – so-called megatrends. Megatrends affect more than just a few specific areas: They have an impact at all levels of society and on individuals as well.
Megatrends don't just affect a few specific areas, they impact all levels of society, including individuals. To keep up with the future, companies need to quickly respond to these developments or ideally anticipate them. Companies that achieve this are of great interest to investors because they represent future viability and growth. The Raiffeisen-MegaTrends-ESG-Aktien is a global equity fund that invests in such companies.
Megatrends not only provide an indication of what the future may hold, but also consistently create new investment opportunities. Characteristic aspects of megatrends include:
Long-term growth: Megatrends affect all levels of society. Companies that either anticipate these trends or can react to them quickly offer potential for long-term growth.
Innovation: Megatrends offer the opportunity to invest in innovative companies that focus on pioneering topics.
New business models: Some megatrends, such as AI, offer the potential for entirely new business models.
There are multiple, often interconnected megatrends. Raiffeisen-MegaTrends-ESG-Aktien strives to identify the major, long-term trends that will significantly shape our future and successfully invest in them. In the process, this global theme fund focuses on three main topics:
demographic change,
climate change, and
technological change.
These three megatrends also encompass a wide range of promising subtrends:
Demographic change is an inexorable reality that entails both challenges and opportunities. The spectrum of subtrends in this segment ranges from themes such as ageing and work-life balanceto urbanisation and many other areas, including smart food, animal well-being, and telemedicine.
Climate change requires urgent action in order to stop or slow global warming. More sustainable and environmentally friendly agriculture and food play a major role here, but are also important themes in their own right, particularly investments in green technologies and renewable energy. In addition to the latter, electromobility, energy efficiency, water scarcity, and plastics and recycling are key subtrends.
We are confronted with the megatrend of technological change particularly often in our day-to-day lives, and last year alone, one subtheme was of particular interest for investors: artificial intelligence (AI). The digital revolution is changing our world at a pace that has never been seen before. Some technology companies are taking on key positions because they operate in especially lucrative fields. Current promising subtrends in this area apart from AI include cloud computing, 5G, cybersecurity, gaming and streaming, semiconductors, and automation.
Megatrend artificial intelligence (AI)
Artificial intelligence has now become a major investment topic. The potential in the AI sector is enormous and plays a key role for major high-tech companies.
More details about the megatrends
How can you invest in megatrends?
Raiffeisen-MegaTrends-ESG-Aktien is a global thematic fund focussing on the three megatrends of demographic change, climate change and technological change, which each make up a third of the portfolio.
Careful selection of individual securities is also crucial for megatrends
A solid understanding of the subject matter and close observation of the markets, political developments, and (technology) trends are needed in order to make adjustments at the right time if necessary. The actively managed Raiffeisen-MegaTrends-ESG-Aktien fund is ideal for this. It is a good choice for investors with a long-term investment horizon who not only want to participate in megatrends but also want to support responsible investment at the same time.
Opportunities abound, risks remain
Along with offering solid potential returns, megatrends also harbour risks. The equity markets have been characterised by substantial price volatility in recent years, and this is expected to continue in the future, as well. While technological change is driving growth, it can also very quickly disrupt or destroy companies’ market positions. Intense competition can lead to oversaturation of the markets and subsequently to declining corporate earnings and stock prices. Regulatory interventions can also significantly change the business environment. Some companies will still need a long time before they generate profits. These companies’ stock prices are often susceptible to setbacks in the event of significant increases in interest rates. This effect has also been seen in recent years.
Current development of megatrends equities
Megatrend equities have experienced several volatile and at times challenging years, much like the stock markets in general. In the meantime, the globally invested megatrend equity fund has significantly recovered from the downward corrections of previous years. What is the current situation and what prospects are there for the coming years?
The fund Raiffeisen-MegaTrends-ESG-Aktien exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.
You too can invest in megatrends with these investment funds:
Invest in high-tech equties
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At first glance, energy seems an unlikely candidate for a sustainable investment. However, "clean" energy is an absolute future topic that not only offers a wide range of growth opportunities, but also enables ESG investments.
Sustainable, digital, and active investment in infrastructure equities
Equities in the infrastructure segment cover virtually the entire spectrum for investors: from promising, but unprofitable start-ups to innovative technology companies experiencing explosive growth to supposedly boring, but highly profitable firms.
A golden age for healthcare equities?
Healthcare equities are regarded as "defensive" (i.e. less dependent on economic cycles) investments. However, anyone who equates this with boredom or even lower return opportunities is completely mistaken. The fund Raiffeisen Health and Wellbeing ESG Equities has been unlocking the return potential of the healthcare sector for investors who are willing to accept the risks associated with equity investments for many years – and it does so sustainably!