Vad ska man investera i 2023?
In this guide, we will focus on providing you with relevant information about the investment forms that we believe have the capacity to perform the best in 2023. Before we get started, we want to remind you that no investment is completely safe.
That is why you need to remember that there is always a risk that you will lose your savings, even if you think you have done everything right. With that written, let’s now dive into it all in earnest by discussing why you should be investing instead of saving.
Why invest money instead of saving?
Historically speaking, it has paid off to focus on investing capital via the stock market, rather than letting it all lie in a savings account. In most cases, the interest rate of a savings account is reflected by symbolic percentages, which are usually below 1%.
On the other hand, the annual return for stock market investors is historically a percentage of 9.99%. This all means that, roughly speaking, your money will grow 10 times the initial investment via the stock market than leaving the money in a savings account.
How do I make SEK 10,000 grow quickly?
One of the easiest ways to make SEK 10,000 grow quickly is to invest in several different stocks and funds. Next, we intend to explain briefly in point form how you can relate to the whole thing in a purely practical way:
- Start by selecting an online broker that is in line with your preferences.
- Open an investment savings account (ISK) via the selected online broker.
- Select 8-15 stocks and funds within various industries as part of spreading your risk.
- Invest in both stocks and mutual funds on an ongoing basis to continue spreading the risk.
- Approach it all from a long-term perspective and avoid chasing small profits.
What to invest in?
Next, we present some of the most common forms of investment that you may consider investing in. Please note that these forms of investment are only recommendations and reflect significant risk.
Invest in shares
When it comes to investing in stocks, the form of investment has traditionally proven to be a good deal. It all offers the potential for lucrative returns, which is derived from the fact that the stock market historically always generates returns within a range of 6-10%.
Invest in mutual funds
If you don’t currently feel comfortable investing in stocks, mutual funds are probably your best option. Furthermore, funds tend to be a form of base when it comes to investments by private individuals. The whole thing should also form part of all private individuals’ long-term savings.
Invest in real estate
When it comes to investments, private individuals tend to acquire a property that they themselves live in, from which they share in the future increase in value. You can also choose to invest in shares via several property companies, where you instead let your capital do the heavy lifting.
Invest in cryptocurrencies
In recent years, it has become much more common to invest in cryptocurrencies as a way of protecting one’s assets against inflation and failed banks. We recommend focusing primarily on Bitcoin (BTC) as it has proven to be a guideline for how the rest of the crypto market is doing.
Why is it important to diversify investments?
By diversifying your investments, you will reduce risk, lower the volatility of your investment portfolio, but also increase the possibility of significantly more stable returns over a longer horizon.
Namely, if you currently own a few underlying assets, you will be extremely dependent on their performance. Should one or more of your assets drop in value, you will be extremely negatively affected by the whole thing.
Through a diversified approach to your investments, you will pave the way for a stable spread of risk. All of this will in turn mean that the portfolio’s development is not as dependent on how individual investments perform.
What to invest in when interest rates go up?
On a general level, the market will slow down in connection with rising interest rates. This all means that defensive companies tend to do significantly better compared to, for example, growth companies.
Fixed income investments in combination with other alternative investments have historically fared well in connection with rising interest rates. Although fixed-income securities reflected by a long maturity decrease in value when interest rates rise, a higher interest rate can still contribute to a relatively good return.
For your savings portfolio to survive during times of sharp interest rate hikes, you need to focus on diversification. By mixing stocks and mutual funds with gold and other alternative forms of investment, you will stand firm when the wind blows the most!
What to invest in 2023?
Depending on what goals you have set, but also how you wish to invest, there are several different ways to approach it all. Next, we will list the forms of investment which we consider to be the most interesting to focus on in 2023!
- Shares: Of course, shares are listed as one of the forms of investment that we recommend in 2023. The easiest way to get started with share investments is by investing through an authorized online broker.
- Companies: When it comes to investing in companies, it is all reflected by either public or private corporate form. The difference between these is that public companies are traded via shares on the stock exchange, while private companies require contact with the owner in question.
- Currencies : When it comes to investing in currencies, we recommend either choosing to invest capital in so-called CFDs (Contract for Difference) and/or via an authorized stockbroker.
- Cryptocurrencies: Investments in cryptocurrencies are usually reflected through so-called crypto exchanges. Some of the most popular cryptocurrencies to invest in at the moment are Bitcoin, Ethereum, Dogecoin and others.
- Mutual funds: By investing in mutual funds, one will be exposed to a broad market segment. Some of the markets you can be exposed to are reflected by, among other things, the oil, energy and IT markets.
- Loans: When you choose to invest in loans, you will act as a lender to either private individuals or commercial companies. You earn money via the interest that is reflected for the loan.
Which industries and sectors are expected to grow?
In general terms, it is difficult to say which industry is expected to grow the most in 2023. However, we have been able to identify certain trends where digitization is likely to continue along the same path, which in turn will affect a number of different industries.
We have also been able to note a significantly higher demand when it comes to sustainable products and solutions, which means that those industries that focus on sustainability will likely be able to grow significantly faster than others.
Trends and predictions for future investments
Generally speaking, it is difficult to predict which industries will perform best in the near future. However, we have identified certain trends which suggest that the following industries may perform better than others when it is all summed up:
- Banking and Finance : When it comes to the banking and finance industry, it is all reflected as one of the most competitive at present. Due to the high level of competition, it requires full focus, hard work and an otherwise great interest in finance.
- IT and telecom : Both the IT and telecommunications industries are reflected as two industries which tend to go hand in hand with each other. Since digitization is a cornerstone of many companies, the IT and telecommunications industry is predicted to have a bright future.
- Real estate : Unsurprisingly, real estate is reflected as an industry with a positive trend and the possibility of lucrative investments. Real estate investments can be invoked by either acquiring the object directly or investing purely in real estate companies.
How to invest in shares?
When it comes to investing in stocks, it is all reflected as a way to grow your capital without you having to put in much effort. In addition to the possibility of making money via dividends or sales, stock trading is also a way to broaden the understanding of the outside world.
Due to the fact that the stock market tends to swing wildly from day to day, it is recommended to approach scouts from a long-term perspective. However, you should still keep in mind that shares reflect a risk, just like any other form of investment.
Next, we will explain how you can get started with investing in shares via three simple steps. Remember that the process below can be applied – regardless of which stockbroker you choose:
- Register/open an account : Start it all by registering an account via the selected stock exchange. We recommend starting with an Investment Savings Account (ISK). Via an ISK, you only pay a standard tax, which in turn is based on the value of the account.
- Deposit capital : Start by transferring the amount of money you wish to use from your bank account to your ISK. Remember that you can also set up ongoing monthly transfers from your bank account to your ISK – if you wish to invest regularly.
- Select Shares : Place an order via the selected exchange by searching for the type of share you wish to invest in. Review the details of the share in question and complete it all by approving the purchase!
How to choose the right stocks to invest in?
When choosing stocks to invest in, you first need to start by focusing on markets that you are familiar with. If you feel unsure or consider yourself to lack knowledge about a specific market, we recommend choosing shares that are found in real estate, investment and growth companies.
It must also be emphasized that the above-mentioned types of shares need to be reflected in stable and large companies which historically have made a profit. By adopting an approach where you invest in stable companies, you will also generally reduce the risks of your investments.
Analyze stock performance and future prospects
The art of determining whether a stock is worth your capital is something that requires some knowledge of the market in question. To reduce the risk of unpleasant surprises, you need to do your utmost to read up on the share you intend to invest in.
Among other things, you need to analyze the shares’ performance and future prospects, while also taking historical data into account. Fortunately, most of this can be found through the internet broker you use, something that the underlying process is important!
How to use different strategies to invest in shares?
In order for you to have an opportunity to identify your investment strategy, you need to focus on reflecting on two questions. The first question is reflected by whether you possess the necessary skills when it comes to identifying so-called misvalued companies.
The second issue is reflected in whether you actually possess the capacity to adequately predict the market and its future movements. Of course, these questions are based on collecting a lot of data which is then analysed, evaluated and categorized adequately.
What to invest in in case of inflation?
Historically, stocks and mutual funds have been shown to be the best way to protect one’s capital against inflation. However, the whole thing assumes that you invest from a long-term perspective, instead of chasing quick and small profits.
Although the value of shares and mutual funds tends to fluctuate, it has historically been shown to generate significant returns from a longer perspective. Also remember to always diversify your investments without betting everything on one card!
How inflation affects investments
The effect of increased inflation usually results in both the capital you have chosen to lock up in selected forms of investment, including the future returns generated through the investments, becoming less valuable than what is reflected on paper.
Which investments are most resistant to inflation?
The forms of investment that have proven to perform best historically during previous periods of high inflation are reflected by precious metals. Above all, gold dominates here, where silver also forms a suitable complement to the whole.