Five long-term themes and how to access them in your portfolio
Where should you invest your money over the long term? Which areas are likely to enjoy the most growth over the next few decades? While these question are virtually impossible to answer without a crystal ball, focusing on key future trends can increase your chances of success.
Here we take a look at five longer-term investment themes and highlight funds embracing them that could be worth considering.
Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and tax rules can change. Chelsea does not offer advice and so if you are unsure of anything please contact an expert adviser.
1. Artificial Intelligence
Artificial intelligence (AI) is a broad term used to describe how computers are increasingly able to perform tasks that would have traditionally required human intelligence. It includes everything from our use of systems such as ChatGTP to medical screening and a dizzying array of automated tasks.
Virtually every industry on the planet is using AI to some extent – or intends doing so – to make their lives easier and increase profits. AI could contribute up to $15.7 trillion to the global economy by 2030*, according to a study by PwC. This is more than the current output of China and India combined.
How can you get exposure?
Many of the world’s leading technology firms, including Microsoft and Apple, are already involved and start-ups are appearing regularly. You can try and pick the winners by choosing individual stocks or opt for an investment fund for more diversification.
Our suggestion is a fund dedicated to this area: Sanlam Global Artificial Intelligence. It invests in companies involved in the main activities of AI, such as research and the provision of services. We like the fact it’s unconstrained and can invest in companies of almost any size.
2. Emerging markets
This is usually the first suggestion when anyone mentions longer-term themes. Emerging markets are growing parts of the world that have the potential to surprise on the upside – even though the investment journey is likely to be rather volatile.
The hope is to benefit from better investment returns than developed economies due to higher growth prospects and favourable demographics. However, it’s important to stress that these areas are riskier due to political and economic uncertainties.
How can you get exposure?
Accessing these areas via an investment fund is advisable as it will give you diversified exposure and help spread your risk. You can opt for a single country fund, such as one solely focused on China, or one that embraces companies in a variety of areas.
M&G Global Emerging Markets is an unconstrained fund that is driven by bottom-up stock selection. The team have a long-term horizon and typically run the fund with a low turnover. It has an outstanding long-term track record and we believe the contrarian nature is also an attractive differentiator, with the team finding opportunities across emerging markets that other managers might miss.
3. Healthcare
This is a vast sector that includes pharmaceutical companies, healthcare providers, insurance companies and medical equipment manufacturers. Demand is soaring across the world for such services. The NHS alone has around 600 million patients every year, according to the charity The King’s Fund.
It’s a theme that won’t be disappearing anytime soon. The combination of an ageing population and advances in medical treatments will ensure there are plenty of investment opportunities. The World Health Organization estimates annual global spending on healthcare is already around $10 trillion**.
How can you get exposure?
You can invest in healthcare in various ways. The first is buying shares in companies involved in the various subsectors, be that insurance, healthcare provision or pharmaceuticals. For generalised exposure to the sector, the Polar Capital Healthcare Opportunities fund is a standout option. The fund’s unconstrained and concentrated approach offers a great opportunity for investors to get specialist exposure.
There are also a number of large funds will have access to leading healthcare names. For example, the sector accounts for almost 20%*** of the Liontrust Sustainable Future Global Growth fund. Meanwhile, the world’s biggest pharmaceutical company, Eli Lilly, is one of the largest holdings in the GQG Partners Global Equity fund****.
4. Environmental issues
How about making money at the same time as saving the world? That’s the concept behind investing in companies involved in areas such as combatting climate change, finding alternative energy sources, and improving water quality.
Public concern about the issues affecting our planet is growing and this is providing investment opportunities as companies look to solve the problems. These include renewable energy firms, electric vehicle manufacturers and businesses focused on waste management.
How can you get exposure?
If you are particularly passionate about one area, such as the provision of clean water, you can invest in companies focused on that sector. However, if you’re generally concerned about the environment, then a diversified fund could be the best option.
One first suggestion is the Ninety One Global Environment fund. This only invests in companies that are contributing to the decarbonisation of the world economy. Another option is VT Gravis Clean Energy Income. This is a portfolio of renewable energy and energy-efficiency related projects.
5. Infrastructure
An all-encompassing sector that includes everything from building roads and railways to installing communication links around the world. This means investment opportunities within businesses involved in construction, utilities, transport and other areas.
The world is developing fast – and there’s a huge demand for infrastructure links. The Global Hub, a not-for-profit organisation formed by the G20, estimates $94 trillion is needed for projects across the energy, telecommunications and transport sectors^.
How can you get exposure?
There are some terrific funds available to access this international theme. One that we like is FTF ClearBridge Global Infrastructure Income, a high-yielding listed infrastructure fund managed by a team of sector specialists. It takes a diversified approach with investments in a wide variety of infrastructure subsectors.
Another option is Schroder Digital Infrastructure. This focuses on companies helping the sustainable transition to a digital economy, which is still in its relative infancy. Currently, the fund’s largest names include American Tower Corp, Cellnex Telecom and Deutsche Telekom***.
*Source: PwC, Sizing the Price
**Source: World Health Organisation, 31 January 2024
***Source: fund factsheet, March 2025
****Source: fund factsheet, 28 February 2025
^Source: PPIAF, InfraTracker 2022
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and fund managers and do not constitute financial advice.