How to Invest in Nanotechnology

Nanotechnology is the science of creating anything artificially at the atomic or molecular level. Researchers in a variety of fields, from medicine and health to consumer electronics, see nanotechnology as a new way of creating devices and materials that would have been unthinkable in the past. Investors keen on promoting nanotechnology or profiting from its growth have several options available to them.

Stocks

The most straightforward way to invest in nanotechnology is to purchase stock in a company that is involved in nanotechnology research and development. Many different types of companies are involved in nanotechnology. Once you select one to invest in, you can purchase stock through a broker or, in some cases, from the company directly. If the business grows and gains value, your investment will pay off in addition to helping fund nanotechnology development.

Mutual Funds

Investing in mutual funds is an indirect way to invest in nanotechnology. A mutual fund consists of investments in multiple stocks and other securities. Mutual funds typically consist of investments in a specific market, such as technology, biotechnology, or science research. You may be able to find a mutual fund that holds stock in several companies with nanotechnology projects or ambitions. Buying into the fund will deliver cash to those companies and let you profit if the fund manager's decisions about buying and selling work out.

Grants and Philanthropy

Some investors are interested in long-term promotion of new fields such as nanotechnology, as opposed to making short-term profits. Besides buying stocks directly or purchasing mutual funds, you can contribute directly to nanotechnology by giving money to an organization that offers science grants or through direct philanthropy. A donation to a non-profit institution, such as a university with a nanotechnology research center, will serve as an investment in nanotechnology and may provide a tax-deduction for you.

Preparation

As with any investment, an investment in nanotechnology carries risk. You will need to weigh your interest in promoting the development of nanotechnology with your desire for short- or long-term profits. You will also want to learn about the companies or institutions you invest in. Some may be entirely devoted to nanotechnology while others may perform work in many different fields at once. Online research and requesting information from each investment target directly are useful steps in deciding where, and how much, to invest.