Investments is a big sector these days. The barriers to enter this sphere have been removed over the past decade, allowing people of all social classes and budgets to invest. So, naturally, more investment options came into the scene to satisfy investors’ hunger for making profits.
But, not all investment opportunities have the same safety levels. Some might collapse even in a strong economy or a bulletproof industry. Individual companies can be taken from a good investment to an unprofitable business within seconds due to various internal and external factors like a lawsuit, internal fraud, management crisis, or product failures. For a safer investment, it’s wise to spread your money across multiple thriving industries.
This article explores the seven industries that offer the safest long-term investment opportunities.
1. The food industry
Eating is a basic human need. And, although there are some scary speculations that humans’ menus will change drastically to the point where we will eat algae, synthetically grown meat, and protein bars, the fact that people need to eat won’t change anytime soon. As the food industry is essential for human life, it is an industry that will continue to thrive.
Besides being vital, this industry is also highly regulated across the world. Most countries have strict regulations and measures for efficient production, purchase, and distribution of food items, which make this industry one of the safest for your investments.
2. The fast-moving consumer goods sector
The fast-moving consumer goods industry includes all sorts of products consumers use on a daily basis, from detergents to cosmetics, soaps, batteries, paper products, and dental hygiene products.
One key aspect that makes this sector safe for investments is that consumers typically put less thought into purchasing these fast-moving goods as they are products essential for daily use. Think about it: you, too, probably don’t spend as much time weighing your options when it comes to buying a detergent compared to purchasing a smartphone.
Now, this sector holds a fierce competition, which makes profit margins low. Yet, low-profit margins don’t sound like such bad news as the volume is high.
3. The textile industry
While the fashion industry poses more risks in terms of investments since it is literally impacted by trends that come and go, the textile industry is a much safer investment option. People will always need clothes, regardless of what fashion trend inspired them. The textile industry comprises the production and processing of raw materials, including cotton, linen, silk, and others.
This industry poses investment opportunities like investing in sheep farming, investing in fabric distribution, or the stock market. If you want to put your money in a more industrialized part of the textile sector, you can look into manufacturing. For example, you can invest in an essential operation such as wool mill, representing the operation of taking raw material and creating a usable end product like yarn.
4. The legal industry
The legal sector has been around since forever. Since the beginning of humankind, all societies have had some sort of legislation that people needed to follow. Today, the story is no different. The legal system makes up an essential role in maintaining discipline in communities worldwide.
No matter how many new laws are passed or changed, the world will continue to face conflicts, challenges, and legal troubles that require the assistance of legal professionals.
Recently, the legal industry experienced a tech adoption boom which made it more thriving than ever before. As the experts from the UKLaw explain, “Thanks to the rise of legal companies focused on using AI and high-end technologies to streamline legal work and drive better results for clients, investors and VCs are increasingly turning their attention to the legal space.”
The legal industry makes a safe investment sector as legal businesses are only expected to continue to flourish in the decades to come.
5. The water industry
Yes, clean and safe water is a valuable asset these days. Some experts even predict that the world’s next major wars will be fought over water as requirements for potable water and industrial consumption are expected to increase over the few decades. Obviously, businesses operating in the water industry are also expected to benefit for this reason. The water industry consists of operations like transport, treatment, and packaging of water.
Even more than food, water is key to human life, especially if you consider that water is even needed to grow food. That being said, the water industry is one of the safest sectors to invest in.
6. The healthcare industry
Over time, the healthcare industry has seen significant advancements that have improved humans’ life quality and expectancy. Yet, the world is still facing regular outbreaks of global epidemics, and even the seasonal recurrences of the flu and colds remind us of how important the healthcare sector remains. And, since disease-fighting machines that can cure all diseases are still only some sci-fi scenarios, we will still need doctors and other healthcare professionals to live healthy lives.
Although preventive measures like vaccinations are constantly being developed, the world will keep experiencing new diseases and viruses that will require the support of the healthcare industry. This makes this sector a safe one for investment for the decades to come.
7. The technology industry
The technology industry is experiencing the biggest boom it has ever seen. New technological advancements are developed by the day in today’s digital and information age that we live in. Computers, smartphones, IT, social networks, and search engines are parts of our daily lives and will very likely continue to do so for a long time in the future as well.
Technology companies seem to be ever-growing these days, expanding their tech products and knowledge in various forms. This is a clear sign that the tech sector will continue to move forward and be a safe investment option.