Investing Definition: 4 Themes to Consider

In recent years, the investing landscape has become increasingly more complex, with a multitude of options and strategies to consider. We have compiled four themes from various investment outlook notes issued by global investment banks and fund houses that could define investing today. These include the increasing focus on environmental, social and governance (ESG) options, the importance of considering the long-term implications of investing, the rise of passive investing, and the continued growth of alternative investment.

ESG options have become an increasingly popular choice for certain mainstream investment within stocks and shares Isas. According to the Callan ESG survey, asset owners have become more aware of the need to account for environmental and social issues in their investment decisions. As such, it will create a new handbook definition of core investment advice, with ESG considerations becoming an integral part of the process.

The Callan ESG survey also showed disparities between corporate versus non-corporate defined contribution plans for adopting ESG options. Among corporate plans, ESG adoption has been higher, with a majority of plans having ESG options available. However, among non-corporate plans, only a minority of plans offer ESG options. This indicates that there is a clear divide in ESG awareness between corporate and non-corporate defined contribution plans.

investing for the long-term has become an important consideration for investors today. Many investors are now looking beyond the short-term market fluctuations and taking a longer-term view of their investment. This requires a greater understanding of the macroeconomic environment and the potential long-term implications of investing. It is therefore important to take a more holistic view of investment and consider the long-term impact of any decisions made.

Passive investing has become increasingly popular in recent years, with many investors now opting for index funds and exchange-traded funds (ETFs). These investment provide exposure to the markets without the need for active management. They also allow investors to benefit from the performance of the underlying markets, without having to worry about the constant changes in the markets.

Alternative investment have also become an important part of the investing landscape. These investment include venture capital, private equity, hedge funds, real estate and commodities. They provide investors with the opportunity to diversify their portfolios and access returns that may not be available through traditional investment.