In such a dynamic environment, investors should look towards sectors that are directly influenced by the increase in wealth and consumer spending. Fintech, for example, stands out as a sector poised for significant growth.
It caters to the newfound demand for accessible financial services and investment tools among a growing class of individuals who are newly financially literate and eager to manage their wealth.
Education technology is another sector that can be expected to flourish, given the strong correlation between wealth growth and the prioritization of education.
Infrastructure development also presents a compelling case for investment. The need for robust infrastructure to support the growing consumer and business activities in these emerging economies cannot be overstated.
Investments in this sector can not only yield financial returns but also contribute to the sustainable development of these regions, aligning with the goals of impact investors.
Moreover, as wealth per person increases, so does the focus on sustainability and responsible investing. Environmental, Social, and Governance (ESG) considerations are becoming increasingly mainstream as investors recognize that long-term value creation is inextricably linked to sustainable practices.
The ESG-driven investment strategy has shown resilience and is expected to continue to do so, as reflected in the increasing volume of funds flowing into sustainable assets.
Alpesh Patel OBE www.campaignforamillion.com