Business Insider: Smart Investment Market Will Reach $2 Trillion

BI Intelligence, a research and consulting agency under Business Insider, issued a forecast that the total global intellectual property investment management will reach 8 trillion US dollars by 2020, and if sustainable investment still accounts for 28% of global asset management (AUM), then This means that the field is a huge market with more than 2 trillion U.S. dollars. At the Fortune Management and Fund Portfolio Summit 2016, Jon Stein, the CEO of the pioneering startup Betterment, said that the smart investment market is still a very early stage, but the future has unlimited potential. Citi expects the market for smart investment to reach $5 trillion in the next decade.

Creating a sustainable portfolio is time-consuming and complex, and the management of these portfolios usually requires about 1% of the cost. When sustainable investment considers financial returns, it needs to consider factors such as social, environmental, and political issues. This is even more complicated. However, smart investing (robot speculation) can use algorithms to automatically invest in assets based on the user's preferences, making the sustainable investment simple. Moreover, these automated services are usually cheaper than the 0.3% to 0.5% charged for manual investment.

Therefore, when it comes to sustainable investment, there is a huge opportunity for smart investment, because sustainable investment accounts for 28% of global asset management (AUM). According to the Global Sustainable Investment Association (GSIA), by 2014, global sustainable investment has climbed to 21.4 trillion U.S. dollars, while global total asset management reached 74 trillion U.S. dollars in the same year. BI Intelligence stated that by 2020, the total assets of global intelligent investment management will reach 8 trillion U.S. dollars. If sustainable investment still accounts for 28% of global asset management (AUM), it means that the area is more than 2%. Trillion dollar huge market.

Importantly, many people at key ages are interested in sustainable investment, such as the GSIA data show that generation Y (Americans born in the last generation of the 20th century, that is, the current 25 to 5 years old in the United States Seventy-five per cent of the adolescent population groups consider social, environmental, and/or political factors when investing, as compared to only 46% of those in the “baby boom” generation. In addition, 76% of women will also consider ethical factors when investing, compared with 60% for men.

Smart investment consultants have begun to provide detailed and specific sustainable investment products. In October 2015, Earthfolio launched its first entrepreneurial smart investment advisor, specializing in sustainable investment deals. At the same time, Motif, a smart investment startup company, is investing in trends and provides four different options for such investments, such as green investment and social and public investment.

Smart investment has already threatened the massive global wealth management industry in many ways, and this threat is likely to fully exert its power in the next few years.

Sarah Kocianski, senior intelligence analyst at BI Intelligence, compiled a detailed report on smart investment counseling, the smart investment service market, the driving force of consumers to adopt smart investment services, and why smart investment markets are for traditional asset management companies. This means that there are huge opportunities, and how intelligent startups at startup companies can elaborate on the success of large-scale legacy companies after they have begun to provide such services.

The following are some of the key points of the report:

Existing large-scale asset management companies will not lose out to intelligent investment start-up companies such as Betterment and Wealthfront. Instead, they are embracing these technologies to launch their own products, and their scale will expand rapidly.


Consumers in all asset classes accept smart-investment - including rich groups. Forty-nine percent of the population will consider using intelligent investment to invest in some assets.


Most of the assets managed by smart investing will come from those with existing investment experience. We estimate that by 2020, the assets of people who have not yet started to invest will only account for less than 1% of the total assets managed by intelligent investment and care.


Start-ups will be aware of the problem: they will have difficulty expanding their scale, and they will need to make their products more unique and more recognizable to be successful. They have already begun to do so, specifically for providing white label services to asset management companies, or customizing more custom independent solutions.

Via BI

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