Amidst the COVID-19 pandemic, several sectors encountered economic challenges, leading to a downturn, while specific industries experienced a surge in growth. As reported by the National Center for Biotechnology Information in their analysis of the impact of COVID-19 on the energy sector, the global oil market experienced a nearly 5% decline attributed to travel restrictions and shifts in work patterns. On a global scale, there was a decrease in nuclear energy output, and the demand for natural gas dropped by approximately 2%. In contrast, the market for renewable energy witnessed a 1.5% growth in the first quarter of 2020.
Investing solely in one sector can impact your portfolio if that specific industry experiences a downturn. Therefore, diversifying your investments can contribute to a more stable portfolio.
When we talk about diversification of portfolios, does that only mean diversification across different industries? Absolutely not!!
Diversifying your portfolio is about more than just spreading investments across different industries. It’s a smart strategy to minimize risk by investing in various types of assets and financial instruments.
When investors consider diversification, they often think of the traditional asset classes. This is because, historically, the unlisted share market was limited to institutional investors due to investment caps. However, this is no longer the case, as Precize has made investments in unlisted shares accessible to everyone.
When we talk about diversification through unlisted shares, According to a report published by Bain & Company, investments in unlisted shares have shown growth over the year 2021.
In 2021, India witnessed significant private equity and venture capital investment growth, surpassing major economies such as China. Indian unlisted shares investments grew by an impressive 96% compared to 2020.
