Many people in the UK were lucky enough to put away savings during the covid-19 pandemic. The average saving in 2020 alone was £7,100; but with the savings ratio hitting as high as 25.9%, many have amassed far larger windfalls.
Although we all deserve some fun and relief after a tough year of lockdowns, there’s an army of passionate investors wondering how they can use this money to both accelerate the change in the world and realise their financial dreams sooner rather than later.
Let’s get active with our savings
Keeping your savings in a cash ISA or savings account may not be helping you or the causes you are passionate about. Any money you plan to spend catching up on holidays, hairstyles or hobbies should be kept in cash; but for maximum impact you should look to kick start your financial freedom by moving the rest into more hardworking financial products as soon as you can.
This is because interest rates savings are at record lows in the early 2020s and saved money will not accumulate any meaningful interest. It is of more benefit invested. Luckily, we think now is the perfect time to put your money where your heart is.
A unique moment to make a mark
The acute crisis of the pandemic is easing in the developed world, and we can start thinking of how to build more momentum of positive change. We think investing in funds with strong environmental, social and governmental credentials is the best approach.
From combating climate change to caring for an aging global population, the changes we want to see can likely be accelerated with more money. And we believe these global megatrends offer huge opportunities for investors to grow their money.
Throughout history, times of crisis have driven leaps of innovation — and once the crisis subsides, many of these innovations can be applied to wider society, helping the world and possibly rewarding the investors who backed them.
We believe we are at such a point in history today; a moment when investors have the potential to drive big changes and grow their money at the same time as their money will be the catalyst of change.
“We see a green transition as a positive for growth and risk asset returns”
– Natalie Gill, Portfolio strategist, BlackRock Investment Institute
Invest in the trends shaping a better world
The response to covid-19 showcased humanity at its best. Revolutionary technology like mRNA vaccines were deployed at breakneck speed. Whole sectors switched online in a matter of months. And through it all, most governments kept grid resources and key supply chains running.
The result is that the backdrop to ‘business as usual’ is radically different from 2019. And that means different businesses and sectors are likely going to perform best for investors. But which companies should we invest in for best results?
Gather’s unique Megatrends Investment Playlists are guided by BlackRock’s research and analysis of the key trends underpinning the growth of the future, such as urbanisation, climate change and technological breakthroughs. Gather is proud to be the first and only investment app in the UK currently embracing this and featuring this innovative analysis from the world’s largest money manager
The information provided by the blog are the opinions of the writer. As such, it should not be construed as investment advice.
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