A few thoughts on 2025 consumption investment

I. Intensive release of upper-level dividends, diverse consumption scenarios become a reality

1. Digital consumption scenarios:

AI + glasses, voice assistants provide real-time translation, health monitoring, and virtual fitting at the click of a button.

2. Green consumption scenarios:

Electric vehicles can charge for 5 minutes and travel hundreds of kilometers, rooftop photovoltaic power generation is self-sufficient, and carbon credits can be exchanged for travel tickets;

3. Intelligent consumption scenarios:

AI + toys transform into "parenting partners," capable of recognizing emotions, customizing stories, and even becoming a child's "emotional coach," upgrading toys from "time fillers" to "educational investments": AI + home appliances, refrigerators automatically reorder supplies, and community group buying delivers with drones in 30 minutes.

4. E-commerce operation scenarios:

The cost of AI-generated advertising materials has plummeted, and the accuracy of intelligent recommendations has significantly improved. Every penny saved by merchants ultimately translates into lower prices for consumers, faster logistics, and better customer service.

II. Rapid rotation in consumption sub-sectors: What should be noted when allocating consumption?

Since March, the hot spots in the consumption field have rapidly switched, with sectors benefiting from subsidies such as home appliances and automobiles starting first. The expected boost in April will strengthen agriculture and trade sectors, and during the May Day period, transportation and service industries have received funding favor. The upper levels continue to push forward, making expanding domestic demand a primary task!

So, how can we capture allocation opportunities in rapid rotation?

【Layout Strategy】

1. Track allocation

Defensive allocation: essential consumption (food/medical) demand is rigid, prefer leading companies with stable cash flow and strong risk resistance.

Offensive allocation: new consumption (AI hardware/trendy toys/IP economy) enjoys dividends, aligning with the logic of capital chasing emerging tracks.

2. Cyclical considerations

The consumption sector is relatively resistant to cyclical fluctuations, but companies that overly rely on a single product should be avoided.

3. Risk diversification

Allocating global QDII funds to hedge against single market risks, with a focus on assessing the fund manager's cross-market operational capabilities.

III. How to select global consumption theme funds?

1️⃣ Outstanding rankings in short, medium, and long-term categories. According to Morningstar data, Invesco Global Select Consumer ranks first in its category for both the past year and the past three years, always an excellent performer!

2️⃣ Broad investment scope, 'A+H + mei🦴', can invest in global consumption-related stocks, and through reasonable global allocation, can comprehensively grasp investment opportunities in overseas markets.

3️⃣ Outstanding performance, significant excess returns. As of the end of Q1 2025, the net value growth of the Invesco Global Select Consumer A share over the past three years far exceeds the benchmark during the same period.

4️⃣ Good at discovering potential companies, the top ten heavyweight stocks in the Q1 2025 report cover many leading internet and consumer companies.

Note: Historical cyclical returns. The past performance of the fund and its net value does not predict its future performance and does not equate to actual returns of financial products; investment must be cautious.

Risk warning: Funds carry risks, and investment should be cautious. Fund companies do not guarantee that funds will be profitable, nor do they guarantee minimum returns. Investors should be aware of risks and read the prospectus, contracts, and other legal documents carefully before investing.

Published in Hubei