If you are new to investing and are looking for places to put your money, these five niche markets are a great option. Niche markets come with some added benefits that can make your investment dollars go further. You can avoid the buyer’s remorse that 41% of buyers experience, even the 30% that were neutral about their purchase, by investing in these niche markets.
The Benefits of Niche Market Investing
Niche market investing comes with the tremendous benefit of not having a large group of investors to compete with. Financial technologies have improved so much over the last decade that it has affected how we invest in a positive way. Not only is it easier than ever to get started, but it is also easier than ever to find niche markets worthy of investing in.
Niche markets can offer a nice return, and you also can invest in things that you believe in. For example, vegan companies, environmentally friendly companies, alternate fuel companies, and more are all great ways to invest and support your convictions.
There are some surprising opportunities. For example, in 2020, the machine tool industry was valued at about $6.6 billion. There is money to be made by investing in niche markets.
1. Pharmaceutical Companies
You do not have to invest in big pharma (well-established pharmaceutical companies) to see a nice return from your investment. There are pharmaceutical companies that are cropping up all the time that are doing big things that will eventually pay off. For example, imagine if you had the foresight to invest in the pharmaceutical company that holds the patent to the drug Suboxone. Suboxone is a drug that helps people break their addiction to opioids (both legal and illegal) with a 40%-60% rate of success after one year. Even a small investment in that pharma company a decade ago would leave you very well off today.
2. Financial Technology Companies
We are moving further and further away from actual cash. Companies that can provide financial technology are going to continue to do well. All those transactions that are made every day electronically will continue to boost this niche market. Think of how well apps like Venmo and Cashapp are doing right now. There is room for other businesses in this niche area to succeed. Investing in a financial app company now at the ground floor level can beef up your portfolio.
Crypto is Still A Niche
Cryptocurrency gets a lot of press, but it is still a niche investment. Investing in crypto can be a bit tricky, but some experts still tout it as a quick way to make some money. It may not be the best long-time investment, but in the short term (think 5 years or less) it can deliver some nice returns. Right now the volatile economy coupled with plenty of uncertainty makes it a good time to buy some cryptocurrencies and test drive them.
4. Entertainment
Are you a theme park aficionado, or are you a video game lover, how about a fan of everything food-related? Invest in the entertainment that you and your family and friends enjoy. You get to support what you love to do and in the meantime, you may make some money. Getting in on the ground floor before the next entertainment trend really takes off can be very lucrative.
5. Healthy Living Tools
Businesses that are tapping into the multi-billion-dollar healthy living market are a great place to invest. Companies that produce supplements, workout equipment, health clubs, and other tools geared toward a healthy lifestyle are a great niche to invest in. COVID 19 has pushed a lot of people to revaluate how they are living and shoved them on the path to a fitness journey. They are willing to spend what needs to be spent on the tools that will help them improve their health.
One of the best pieces of advice when it comes to investing that there ever was, is to keep your ear to the ground and invest in businesses that are changing the landscape. Growing your money by investing in a growing business that is providing solutions to a current problem is the easiest way to find success.
