Investment management in 2025 is expected to be shaped by several key trends and innovations. One major focus will be the personalization of investments, with wealth managers offering customized portfolios tailored to individual preferences, including tax-efficient solutions. This is driven by the rise of direct indexing, where investors can create personalized portfolios with greater tax advantages and alignment to their values.
Another significant trend is the democratization of private markets. Traditionally limited to institutional investors, private equity and debt are increasingly accessible to individual investors through new vehicles and fintech platforms. This shift is expected to expand private market allocations from around 2% to 3-5% of total portfolios by 2025
Additionally, digital assets—such as cryptocurrencies, tokenized equities, and stablecoins—are becoming a mainstream investment option. Wealth managers will face challenges in adapting to this space, including regulatory uncertainty and the need for specialized infrastructure.
With these innovations, investment firms will need to embrace technology to stay competitive. The demand for digital wealth management tools and seamless integration between banking and investing will push firms to enhance their digital offerings.
For a more detailed view on these trends, check out Forrester and McKinsey’s predictions for the future of investment management
