Want to invest in healthcare but unsure of how to get the most out of your money? Then this article is for you! This handy guide outlines why you should think about expanding your portfolio into healthcare and offers a few key areas to invest in.
Healthcare is a growing market that offers high returns. According to the World Health Organization, global healthcare expenditure has been steadily rising and is projected to rise even further.
Investing in the healthcare industry is not limited to institutions, hedge funds, or accredited investors. Anyone who has money can invest in this sector if they choose to do so! While it may be more difficult for individuals with a smaller budget, there are still suitable options.
With that in mind, here are five different ideas for how to effectively invest in healthcare:
The price of bluechip stocks is directly linked to companies’ past and future performance. These companies are usually industry leaders that invest a lot of capital into research and development. This ensures that these corporations always meet their customers’ needs by bringing out the newest, most effective healthcare solutions on the market.
Investing in bluechip stocks is relatively straightforward and doesn’t require much knowledge about the sector. This makes it a good option for beginners or those who invest on behalf of others.
Exchange-traded funds (ETFs) invest in a range of assets like stocks, bonds, gold, oil, and other commodities. ETFs offer investors an easy way to invest in a variety of different markets. The price of these funds is tied to the total market value of its underlying assets.
There are hundreds of healthcare ETFs available across a variety of sub-sectors. Investors can invest in these types of funds by buying shares through a broker or on the ETF’s designated exchange.
An advantage of investing in healthcare through ETFs is that you invest passively without having to worry about picking winners and losers. You can also rebalance your portfolio easily by selling some of the fund’s shares to buy new ones.
The medical devices and equipment sub-sector includes companies that facilitate operations, test bodily fluids, manage health records, identify disease outbreaks, or offer other types of equipment. Some examples of this include wheelchairs, hospital beds, feeding pumps for babies, and chemotherapy treatment delivery systems.
Investing in medical devices is relatively simple, and there are many different companies to choose from. However, one thing you must do is research the market before getting involved. Typically, medical device pricing research varies from place to place. Be sure to invest in the right product at the right time.
The world of healthcare is being revolutionized by the growth in mobile technology. You can use these products to manage your exercise pattern, your diet, your sleep patterns, your medication, and even your mental health.
Some examples of mobile technology companies that focus on healthcare include:
These companies offer apps and programs through a subscription-based or ad-based business model. This industry is expected to increase its revenue exponentially in the coming years, which means there’s still lots of money to be made.
Health services companies usually offer preventative healthcare to keep people healthy and out of hospitals. This sub-sector includes various types of companies ranging from primary care physicians (PCPs) to distribution networks.
Investing in health services can be as simple as picking a company you like that provides healthcare. However, to really make your money grow, it’s a good idea to invest in something more conservative, like medical insurance companies.