Investing in Robotics: Why Mutual Funds Are a Smart Choice
Robotics has emerged as one of the fastest-growing industries worldwide, expected to reach a market value of $135 billion by 2019. Investing in robotics companies can potentially generate high returns for investors, but it is not an easy task. The rapid growth and advancement of technology make it difficult for individual investors to identify the right stocks to invest in. In such cases, mutual funds focused on robotics can provide investors with an excellent opportunity to put their money to work in this exciting industry.
What are Robotics Mutual Funds?
A mutual fund is an investment vehicle that pools money from many investors to purchase a diversified portfolio of assets. Robotics mutual funds invest in companies that are involved in the research, development, and manufacturing of robotics technology. These funds invest in a broad range of companies, from small start-ups to established corporations.
The Benefits of Robotics Mutual Funds
There are several reasons why investing in robotics mutual funds can be a smart choice:
Diversification
Investing in a single robotics stock can be risky as the industry is still in its nascent stage. The success of a particular company can be highly dependent on its ability to stay ahead of the technological curve. But investing in a robotics mutual fund provides you with a diversified portfolio of robotics-related stocks, thus spreading your investment risk.
Professional Management
A mutual fund is managed by professional managers who have expertise in the field of robotics. These managers use their knowledge to study and research companies involved in robotics, making informed decisions about which stocks to invest in.
Liquidity
Mutual funds are highly liquid, meaning it’s easier to buy and sell them. You can buy and sell mutual fund shares at any time during the trading day, making it a convenient option for investors.
Top Robotics Mutual Funds
Here are some of the top robotics mutual funds to consider:
RPAR Risk Parity ETF (RPAR)
RPAR Risk Parity ETF (RPAR) is a diversified ETF that invests in both equity and fixed-income securities, including robotics and automation companies. This fund seeks to balance risk across asset classes with a systematic, rules-based approach.
iShares Robotics and Artificial Intelligence ETF (IRBO)
The iShares Robotics and Artificial Intelligence ETF (IRBO) invests in global companies engaged in manufacturing, distribution, and development of robotics and Artificial Intelligence (AI) products and services. This fund seeks to track the investment results of the NYSE FactSet Global Robotics and Artificial Intelligence Index.
Robo Global Robotics and Automation ETF (ROBO)
The Robo Global Robotics and Automation ETF (ROBO) invests in global companies that can benefit from the growing trends in robotics and automation technology. This fund seeks to track the performance of the ROBO Global Robotics and Automation Index.
Conclusion
Investing in robotics mutual funds can be a smart choice for investors seeking exposure to this exciting industry. These funds provide diversification, professional management, and liquidity that individual stocks may not offer. Moreover, with the emergence of numerous robotics mutual funds, investors have a range of options to choose from. With careful research and a sound strategy, your investment in robotics mutual funds can potentially provide high returns in the long run.
