GLOBAL INVESTMENT OPPORTUNITIES
Global Investment or International Investment is a strategy of selecting the global-based investment options for your portfolio. These investments include options like Mutual Funds, exchange traded funds and direct investments in foreign markets.
The reason you should consider global investments is that by spreading your money among several markets, you achieve what stock market theorists have been propounding for years–diversification and hedging risk by spreading it across a mix of assets and markets. Individual economies are subject to economic cycles. By investing in several economies at a time, your portfolio can earn smoother returns.
Besides, reducing risk through diversification and global investing can also boost your portfolio returns. With no country managing to be at the top of the charts each year, the case for spreading your investments across countries definitely gets stronger.
Generally there are three types of funds:
1. Direct investing in global markets
2. Funds that use feeder route to invest in Global Funds
3. Fund of funds that invest in several funds to achieve international exposure
Like any other global investment has its own set of risks
- Volatility in currency exchange rates
- Changes in market value
- Significant economic or political events
- Low liquidity