Tuesday, August 28, 2012

Smart Ways to Profit from Trends

by Galia Gichon

Every now and again you hear something that makes you think, “Wow, I should invest in that!”

Usually it’s risky to throw your money at some hot new thing. But if you do some research, and the trend looks promising—there’s a safe way to catch the wave.

Invest in a specialized exchange-traded fund (ETF) or mutual fund that captures the market you have that winning feeling about. Some examples*.

HealthCare: Baby boomers are aging (sound familiar?). And a growing senior population likely means big growth for health and medical companies. Get in on the bio-tech trend, for example, with Health Sciences T. Rowe Price (PRHSX).
Real Estate: The real estate bubble may have collapsed, but if you believe that what goes down will inevitably rise again, consider Pimco’s Real Estate Real Return Strategy Fund (PETDX).
Media and Telecom: Annoyed that you missed the first boat with Apple or Google? Try Fidelity Select Multimedia (FBMPX).

Invest in growing sectors and trending ideas with motifs—customizable portfolios built around real-world ideas like Biotech Breakthroughs, Tablet Takeover and Housing Recovery. Explore these and other ideas at Motif Investing now.

Of course, any specialized funds should be added as part of your overall, balanced portfolio

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