Diversifying your international investment portfolio is a key part of asset management if you are looking for long-term growth. Diversification allows an investor to withstand a fall in some sectors, especially when investing internationally in stocks and bonds.
International investment in foreign stocks is hot, and recent emerging economies, such as India and China, offer U.S. investors looking for international investment opportunities a great prospect to get a real return on their investment. And interest in emerging economies has grown more than ever with the recent boom of automakers, internet companies and e-companies. While this may seem similar to the online boom of the early 90s, international investment in funds will remain.
Investments in funds internationally offer diversification, and the biggest advantage of investing abroad is the fact that markets operate in different cycles. If the U.S. economy is in recession, some other foreign country will rise, and so having a portfolio with more than one country allows you to counter volatility in one market and reduce overall risk.
It is interesting to note that international funds over the past 5-10 years have performed much better than US equity funds. The advantage is undoubtedly the diversification of opportunities for international investment, and international funds offer higher returns on your assets.
For risk-averse investors, international investment in future markets is a great idea. Countries like Brazil, Thailand and Indonesia offer investors huge profits but also take risks. It is important to remember not to be over-exposed to any one fund if you are diversifying for asset management. You should not consider getting 15% or more in your portfolio as a rule.
You also have the opportunity to diversify your wealth through international funds. There are many types of investment funds that offer you the opportunity to create a diverse portfolio. Look for small, medium and large stocks around the world from various developing countries like China to high-industry and well-established economies such as Japan. You can also make international investments in the form of real estate investment funds and acquire real estate just like other stocks or commodities.
Asset management should help in diversifying your portfolio and one good way to pay attention to international investment in fund management.