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Invest in the world's first daily traded fund focused on Augmented Reality (AR) and take part in the next big technology wave
In the fall of 2018, the Augmented Reality Fund was launched, an actively managed fund that uses stock picking to select the companies in the AR sector with the greatest future potential. The fund delivered a return of 41.2% in 2019 and 48.7% in 2020. The fund has started 2021 with a return of approximately 20% at the time of writing.
- Nicheing a fund towards a sector that we know will grow explosively is gratifying. I am convinced that the AR sector will have significantly stronger growth and thus opportunities for profit and return than the market in general, says Magnus Nicklasson, manager of the Augmented Reality Fund.
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What is AR?
Virtual Reality (VR), as it is more commonly known, creates a completely artificial world by putting on VR goggles. Augmented Reality (AR) involves supplementing the real world with digital information of various kinds, such as holograms, numbers or instructions, of which the game Pokémon Go is a famous example. These digital objects are usually viewed through a smartphone or with special AR glasses.
- There is virtually no sector that will not be affected: education, industry, healthcare and logistics are examples of sectors where the use of AR is growing rapidly. The sky is the limit, as there are many situations where digital information can be helpful. For example, a common use case is when a company is assembling complex products. Workers can receive instructions in their field of vision through a pair of AR glasses instead of flipping through a thick manual. It is time efficient while minimizing the number of errors, says Magnus Nicklasson and continues:
-"However, the technology has not really penetrated the consumer market yet. I am convinced that it is only a matter of time before this happens. We need more applications that attract users, a “Killer Case” is really enough. Furthermore, I think 5G will be an important factor, so that we can cope with the technical requirements that AR brings. Once AR glasses for the consumer market are released, it will be a huge boost. I am absolutely convinced that we will all be using AR glasses on a daily basis. Whether this will take two, three or even five years is more uncertain.
How to create exceptional returns?
- Having a strong belief in the future and going against the market is the winning concept for creating exceptional returns, according to Magnus Nicklasson. A historical example is Apple's iPhone, which was considered a niche and somewhat strange product at first, but after a couple of years had several billion users.
- Looking at society today, there are several exciting areas, which the market agrees with. For example, electric cars are on the rise - everyone agrees that the automotive industry will be electrified in the near future. Therefore, it is not very interesting in the here and now, because everyone agrees on it. AR is a little bit more unknown to the market, although it is considered an interesting area. I believe that AR will hit us earlier and with a greater force than perhaps the market expects and therefore I believe in great opportunities for returns.
Something that is important to consider as an investor?
-"When you invest in new technologies, there is always a certain amount of speculation and risk involved. Many of the companies are in a development phase and strive to reach profitability. For this reason, I think an equity fund is perfect. You get a broad exposure and a good diversification, which lowers the risk,” says Magnus and continues:
-"I also think that Augmented Reality is a perfect theme for a fund. My investment universe is large enough to be able to find exciting and niche companies while not being too large and general.
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