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There's a world of information -

There is a world of information to consider before investing in any sort of industry-specific fund or individual company.

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An example of a "safe" investment -

An example of a safe investment is the US treasury bond, which is considered safe because they’re guaranteed and returns are predictable.

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How will an industry operate in the future? -

When looking at the investment safety of an entire industry, it’s usually best to try to predict how the industry’s product or service will be used in the future.

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Will people still be using the service/product? - For example, when we are trying to predict the profitability of the industry of social media, we might ask will people be using it in 20 years?

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Some things will never change -

In 20 years, is it likely that people will still be eating food? Of course! This is why businesses associated with the food industry, if well established, are likely to survive and thrive.

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The food industry -

Businesses associated with grains, cereals, beverages, and other functions of the food industry, like packaging, aren’t going anywhere anytime soon.

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Within the industry things change -

Certain areas of the industry may come and go, but the industry as a whole will continue to flourish because we need it to survive.

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The industry is solid -

All this makes the food industry one of the safest industries for investment.

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Fast-moving consumer goods -

Fast-moving consumer goods include a wide variety of items like toiletries, detergents, soaps, cosmetics, batteries, and paper. It also includes food and drinks, and the items usually have a rapid shelf turnover.

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The top dogs -

Profit margins are low and there’s fierce competition between companies themselves, but the companies that dominate the markets don’t get pushed out often (consider Colegate).

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The fashion industry -

Fashion trends come and go. In fact, with sustainable fashion becoming such a huge trend, the world of fashion is going through a considerable and exciting revolution right now.

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Considering raw materials -

Because brands come and go and so do large retailers, it’s interesting to consider retailers of the raw materials themselves. Cotton, linen, and silk have all been used heavily for millennia.

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Law, compliance, and regulation -

The law isn’t going anywhere any time soon either. The world is full of conflict, legal challenges, and feuds. Hence, the service-oriented legal and compliance sector qualifies as one of the safest investment sectors.

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Unless society falls apart, there will be law and order -

Unless there’s some kind of complete breakdown of law and order and society returns to some kind of primitive version of itself, then law and compliance will exist.

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The energy sector -

Another industry that’s one of the safest to invest in is the energy industry. We need energy to run virtually everything in our world. Even when the source does change, it usually happens very slowly.

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Energy switches don't happen fast -

Take electricity or fossil fuels for example. Everyone is aware that digging deep into the earth to extract oil to convert into petrol is a bad idea because it results in excess carbon dioxide in the atmosphere, contributing to global warming.

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Oil still fuels the majority of vehicles -

However, in the majority of the world, we still use oil as we have for the past 50 years. Sure, there are some alternatives on the market in terms of vehicles, but the switch takes a long time and companies like Shell still profit. However, stock prices have fallen significantly in oil in the past 10 years.

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Electric vehicles have grown and will continue to grow for a long time -

On the other hand, it’s important to keep an eye on where things are headed in energy. The renewable energy industry is growing fast, a lot faster than oil industries are growing.

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The water industry -

People are always going to have to drink water. Some pundits believe that the climate crises, overpopulation, and other issues are all going to cause a major shortage of water.

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No matter what happens, we will need it -

Whether it’s bottled water or governmental public sector organizations, water is always going to be needed, making the industry pretty safe to invest in.

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The healthcare sector -

Similarly, healthcare is always going to be necessary throughout every society. So too will the advancements that come within the industry.

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The need for healthcare will never fade -

With the COVID-19 pandemic, we were only reminded how essential these kinds of services really are and how they are largely the last lifeline in society.

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Those industries related to healthcare -

There are always going to be diseases that treatments will need to be developed to fight against. In short, healthcare is here to stay.

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The tech industry -

Technology companies come and go, but the industry itself has been growing for as long as time, depending on how you define technology.

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There's no tech-free world in sight -

Computers, IT services, phones, internet services, and everything related is going to be used for as long as anyone can predict.

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The tech industry may also be necessary for survival -

In a sense, this sector is also what keeps humanity moving forward. Coming back to the example of climate change, it’s important now that renewable energy technology continues to be developed.

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Economies -

After a financial crisis, people are always looking for safer investments. Certain industries are, in a sense, recession-proof. Much of these industries are outlined, and actors in these sectors often produce reliable long-term results.

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Low-risk and long-term investments -

People often are successful in their investments by focusing on industry-specific mutual funds, ETFs, or index funds instead of investing in individual companies within industries.

Sources: (Investopedia)

See also: Investment tips everyone should know

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