A current trend has been observed amongst professional investors to pay heed to the social impacts of their investments. ESG (Environmental, Social, and Governance) characteristics are becoming more popular as everyone deems it to be sustainable and promising in the future.
An investment in Biotechnology looks viable as it fulfils all the mentioned conditions. Biotech firms aim at fostering a favourable social and healthy social state where medicines can be created that is not only affordable but also more efficient at curing diseases.
Okay, but what are the benefits?
Here are some benefits of investing in Biotechnology:
- Ageing population
As we all know, everyone grows old, and as he or she does, the need for more remedies also increase. It’s only natural to assume that not everyone would be able to afford medicines and treatments that are too expensive and yet necessary. According to recent reports, by the end of 2040, nearly 20% of the U.S. population will comprise of the elderly.
Biotechnology would not only be able to come up with more innovative ways of treating diseases like cancer, but it would also be accessible to many more people. Full-time investors have taken this demographic development into account and intend on capitalising on this trend.
- Forecasts seem clear!
Although choosing to invest in a particular stock can be risky it should be said that the figures for the industry over the last ten years or so is indeed unbelievable. Annual returns have been up to 15%, which is nearly double than that of the estimates by the American Stock Exchange.
- It’s never stagnant
In the 21st century, science is moving ahead with speed unforeseen in the past. Biotechnology as a sector is also taking giant steps towards the future by coming up with cures and medicines.
Investing in a sector that is continuously growing attracts more money and investors should carry out proper research to invest in the right company. This ensures increased returns and security for the future.
- Many don’t want to invest here
Owing to the risk factor that a particular drug might not hit it off in the market, people tend to skip this option for a more guaranteed return. However, anyone with prior experience would testify to the fact that an investor is more likely to receive a more substantial chunk of the profits.
- Prices stay stable
The cost of biopharmaceuticals remains more or less stable throughout an extended period. One does not need to worry about fluctuations as there is always demand for effective drugs. External politics and regulations hard influences its prices and the stocks are unlikely to crash drastically all of a sudden. This investment in this sector makes an attractive proposition for anyone, especially beginners.
Although one might argue that investment is something that is done for personal profiteering, one should never forget the long term impact investing in Biotech can have. By doing so we are not only ensuring our health, but we are also contributing towards the progress of medicine production and thus leaving the world a better place for the future generations.