Keeping up with investment trends is similar to following TikTok challenges: one week, it’s all about cryptocurrency; the next week, it’s ESG funds that everyone can’t stop talking about. Recently, copy trading has become the latest trend. When you properly understand one, people have already jumped to the next.
So, what’s real? And what’s truly worth your money? We’ve compiled a list of the top ten investment trends for 2025 and, most importantly, discussed whether you should follow or ignore them.
Robo-Advisors Powered by AI
AI is not only running Netflix suggestions but also handling investment portfolios. Robo-advisors have evolved into complex systems capable of evaluating risk profiles, predicting market fluctuations, and automatically adjusting investments. They respond quickly, are cost-effective, and are becoming highly accurate.
Bank of America claims that this technology is a perfect method for hands-off investing since you don’t have to pay human advisors. However, keep in mind that no AI can forecast the market perfectly, and you’ll still require human intelligence to make perfect investment choices.
Follow or ignore? Follow. Robo-advisors are an excellent tool for beginners and busy investors.
Cryptocurrency and Crypto Assets
Whether you like it or not, crypto is here to stay. Bitcoin is still unpredictable but powerful. Ethereum is gaining importance with the rise of smart contracts. New coins and tokens are emerging faster than you can say “blockchain.”
However, FCNB raises significant concerns regarding fraud, cybersecurity threats, tax confusion, and volatility. Scams providing “guaranteed returns” are prevalent nowadays. If you’re investing in crypto, learn about the product and the system, and don’t invest more than you can afford to lose.
Follow? Yes, but cautiously. Limit your exposure and avoid falling for overhyped claims.
Copy Trading
Imagine being able to replicate the trades of a professional investor in real-time. It sounds clever, doesn’t it? That’s the essence of copy trading.
Platforms like eToro enable users to replicate the portfolios of successful traders, making it easier for beginners to get started in the financial markets. However, it’s not risk-free. If the trader you’re following makes a poor decision or engages in trades beyond your risk tolerance, you’ll also face negative consequences. FCNB advises investors that past performance does not guarantee future results, regardless of how impressive a trader’s track record may appear.
Follow? Perhaps, for knowledge. However, it is not recommended to follow this as your only plan.
ESG (Environmental, Social, and Governance) Investing
Motivated by climate awareness and social justice movements, ESG investing has grown from a popular trend to a $35 trillion industry worldwide. Investors are seeking businesses that are both profitable and ethical.
According to the Bank of America, ESG funds have outperformed standard funds during recessions. However, the FCNB cautions about “greenwashing”, where businesses overstate their sustainability credentials. If you plan to invest, verify how the fund defines ESG, and whether it’s living up to its promises.
Follow? Yes, but make sure to do your research.
Real Estate Investment Trusts (REITs)
Do you want to invest in property without renting out your home? REITs provide a means for investors to access real estate markets by enabling them to purchase shares in real estate portfolios. Some concentrate on housing buildings, while others focus on commercial or industrial areas.
With increasing rents and growing demand for sustainable housing, REITs are a favorable investment option. Additionally, they offer liquidity since they are traded like stocks and often provide dividends. However, interest rates and market declines can still significantly affect returns.
Follow? Yes, particularly if you want property exposure without ownership.
Fixed-Income Investments
Do you recall the dull days of bonds? Not anymore. As interest rates rise, fixed-income products are regaining their appeal. CDs, Treasury bills, and corporate bonds provide satisfactory rates with comparatively lower risk.
According to Bank of America, these are ideal for retirees or anyone seeking a steady income. However, slow growth is the trade-off. Fixed-income investments will not make you wealthy, but may give you a good night’s sleep!
Follow? Yes, to maintain stability.
Quantitative (Quant) Investing
Quant investing utilizes math models and algorithms to forecast market changes (imagine if robots managed hedge funds). They process data, analyze trends, and execute trades more swiftly than any human could.
These funds are becoming increasingly popular for good reasons, as some fetch excellent results.
On the flip side, Qaunt is not easily understandable. Unless you know the math of the model, you’re counting on a black box. In addition, when markets become unusual (as in March 2020), even sophisticated models can fail.
Follow? Yes, if you know enough about it or trust the company handling it.
Other Investment Options (Art, Wine, NFTs & More)
Thanks to fractional investing, you can now purchase a part of a Banksy painting, invest in a vintage wine fund, or own a share of a flat in Dubai. Other investments are popular, promising to diversify your portfolio beyond stocks and bonds.
However, the FCNB warns to be cautious. These investments are often illiquid, difficult to value, and highly susceptible to market trends. Just because something is uncommon or exclusive doesn’t mean it’s necessarily profitable. NFTs are a prime example; some have experienced a sharp increase in value, while others have seen a decline.
Follow? A little bit, for pleasure and change.
Short Selling and “Short Squeeze” Hype
Short selling is the move that gained significant attention during the GameStop craze, a risky strategy where you bet a stock will drop in value. But what if it goes up instead? You could lose a lot of money.
Then, there’s a “short squeeze” when short sellers freak out and start repurchasing the stocks to cut their losses, causing the price to shoot up even more.
According to FCNB, short selling is more of a gamble than a smart, long-term plan. Unless you’ve got nerves of steel (and a big bank account), it’s probably best to leave this one to the pros.
Follow? Not really, unless you’re an experienced trader.
Global Diversification
Why limit yourself to North American markets when emerging economies are expanding rapidly? International investing diversifies your risk and provides access to growth opportunities in Africa, Asia, and Latin America.
However, FCNB cautions that global investing is associated with currency risk, political unpredictability, and economic uncertainty. Learning about local market dynamics and keeping up with world news is vital here. You can gain worldwide exposure via international ETFs or mutual funds.
Follow? Yes, but stay informed about world events.
FOMO & Social Media
Social media is a double-edged sword for investors. On one hand, you can learn a lot from TikTok and X. On the other hand, it’s the ideal platform for scams, hype, and FOMO (fear of missing out).
FCNB advises investors to exercise caution before acting on viral investment tips. Always verify information with trustworthy sources.
Invest With a Goal
Before following the next trend, ask yourself: Does this investment align with my goals? What are the risks associated with this? Am I doing this out of FOMO, or because it aligns with my financial strategy?
Trends can be entertaining, thrilling, and even profitable. However, smart investing is about clarity, not confusion. Whether accumulating for retirement or saving for a house, let your goals dictate your course instead of relying on trends.
