The three factors mentioned above will have a strong impact on investment trends for many years to come. So what does Crypto look like in their eyes?
Investment allocation of the super rich
Knight Frank surveyed more than 500 ultra-wealthy people, including private bankers, financial advisors and family offices, representing a combined wealth of more than $2,500 billion.
The largest number are primary residences and second, third, nth real estate (collectively referred to as primary and secondary homes), accounting for 32%.
The remainder are investment assets, called "investable" including:
26% stocks, over 30% commercial real estate, 2% crypto. Combined residential and commercial, real estate accounts for more than 50% of rich people's assets.
The stagnant rate of crypto among the rich is a problem that causes cash flow into crypto to be stuck because projects/companies lack bait capital from the super rich to mobilize. The target of 3% last year was not achieved.
=> In short, the world's rich people are holding less and less gold, from 8% 10 years ago to only 3% now. The proportion of rich people holding crypto may surpass gold.
Besides, from the perspective of the super rich, residential real estate, not gold, is the safest investment. Crypto is not surprising when it is considered the riskiest investment.
The next generation of super-rich heirs
According to statistics, from now until 2030, there will be 68 trillion dollars transferred from grandparents to grandchildren aged 24-35.
Obviously, the world is changing very quickly. The lifestyle, style, preferences or investment views of this inheritance class will certainly be much different from the previous generation.
In 2022, two young people from the next generation of heirs of a billionaire in Singapore created a startup that bridges the NFT world with the world of rich billionaires. If you own enough unique, rare, and expensive NFT items, you will be introduced to join the club of real-life billionaires.
The previous generation liked precious paintings, but now children like to play NFTs.
Our world, our rules. There is no reason why the next generation of heirs - the generation taking over the world - must play according to the rules and principles of the previous generation.
In short, whether Crypto's future will be groundbreaking or not depends greatly on the investment perspective of the next generation of heirs. At the present time, Crypto is quite attractive to them, especially NFT. So, don't ignore NFTs anymore, let's start learning about them.
Some numbers predict cash flow in the global fund management industry from now to 2025-2026.
*Note on some terms:
Active management: An investment management strategy in which an investment manager uses technical or fundamental analysis to evaluate and select assets with the hope of generating returns higher than those of market indices. common school.
Passive management: An investment management strategy in which investors focus on investing in ETFs or index funds with the goal of tracking and investing in general market indexes (e.g. S&P 500) without Carry out independent analytical research.
Alternatives management: An investment management strategy that focuses on investing in non-traditional assets, such as real estate, commodities, land investment funds, insurance investment funds, Crypto funds or other types of assets. other assets to diversify investment portfolio and reduce risks.
AUM: "Assets Under Management", meaning the total value of assets that an investment fund is managing for investors. This is an important index to evaluate the scale and efficiency of an investment fund, as well as the financial strength of an asset management company.
The total fund management industry will have a scale of about 145 trillion by 2025, of which the total AUM of "alternative assets" (called non-traditional assets for simplicity) will account for about 21.1 trillion (including PE, hedge funds, real estate funds and crypto funds).
It is forecasted that active funds will lose market share to passive funds and alternatives.
In which, alternatives will have more money coming in. The problem is that in "alternative assets", it is unknown what will become a big trend. I hope it's Crypto guys😍
Thank you for reading this entire article. Hope it brings you a lot of useful information. The article was edited and compiled by me from the teacher's source - Dr. Ho Quoc Tuan. Teacher Tuan's articles are extremely high quality - you should follow him.
