When it comes to investments, many of us may look to companies and sectors that are present in our everyday lives. For example, an investor who uses Apple products every day may be interested in investing in Apple Inc. But whether you’re an investor or not, you benefit from sectors that others invest in every day. The automotive industry builds the car you drive to work, the agricultural industry grows your morning coffee – and right now, there is a lot of attention on the healthcare industry because of the coronavirus outbreak.
Growth in the global healthcare sector
The pandemic has triggered disruptions and advancements in the healthcare industry. With the help of investors, the healthcare industry can develop better ways of delivering medical care – from researching more effective medicines to using technology to make medical procedures more efficient. The global healthcare sector was worth USD 8.45 trillion in 2018, and has been growing fast at an annual rate of 7.3% since 2014. Offering high profits relative to the rest of the economy – without being easily affected by disruptions that would affect other high-growth industries – investing in healthcare is a way to make a difference while you grow your wealth.
Investment opportunities in healthcare
In the next 10 years, healthcare spending in Asia alone is predicted to grow by USD$3 trillion, and, in most OECD countries, it would even outpace GDP growth. Innovations in medical technology are disrupting traditional markets and changing the way health providers care for patients. For example, Alibaba has introduced an AI that could help diagnose COVID-19 cases. This blend of healthcare and the latest technology shows that the industry is working harder than ever before to meet demands.
Why should you consider investing in healthcare?
The healthcare industry is always growing and innovating. Although this can pose some risk from volatility, it can also offer high potential returns.
One way you can invest in the healthcare industry is through healthcare funds. The United Global Healthcare Fund (MYR Hedged) has delivered a one-year return of 29.49% as at 31 August 2020, outperforming the benchmark MSCI ACWI Healthcare by 7.36%. The healthcare industry will continue to stay relevant in the medium to long term due to the worldwide ageing population, higher spending per capita on healthcare and rising demand for healthcare from emerging markets.
The United Global Healthcare Fund is sub-managed by Wellington Management, which has over four decades of experience covering the healthcare sector. We are confident that they have the expertise to distinguish innovative and value-driven companies from the industry, while navigating volatility and capitalising on market opportunities to benefit their investors.
Find out more about the United Global Healthcare Fund here here.
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