ForeignStockFund.com aims to invest in foreign stocks & mutual funds consisting in equities of publicly and private companies outside the United States. Foreign Stock Fund aims to invest in foreign stocks & mutual funds consisting in equities of companies outside the United States.
Investing in foreign stocks and mutual funds means purchasing stocks from outside of the U.S. economy. While many people see it as a risk to invest in a foreign market, others view it as an advantage and the ability to invest in growing markets. Should you invest in foreign stocks and mutual funds? Professionals suggest that if you do, that they make up no more than 10% of your entire portfolio due to the risks involved with investing in another currency and on another continent. Here are a couple of reasons why some investors choose to invest in foreign stocks and stock funds.
Mutual fund investors enjoy investing in overseas stocks and overseas mutual funds for a variety of different reasons. For one, it allows investors the ability to tap into foreign and international markets without having to hand-pick the foreign stocks themselves, but with the assistance of a top mutual fund manager.
Invest In Growing Economies: Investing in a growing economy can have a lot of benefits. First, you will be starting out with a small company that has the potential for great return in the future. Second, you will be helping to control and grow a new corporation from the ground up, you are supporting an economy that might need your help meaning that you’re doing good while you make money. While not all foreign stocks are new companies or growing economies, you can choose those that are if you like.
Diversify Your Assets: We all know that the U.S. market isn’t always the most profitable. When the U.S. market isn’t returning your investments, you can invest in foreign stocks. Usually one half of the world is ‘up’ in income while the other half is ‘down’ so investing in top e-commerce stocks from around the world could keep you earning money, even when the U.S. is losing money. For example, investing in Dutch stocks would give you the opportunity to earn money from one of Europe’s largest ports no matter what else was happening in the world.
Potential for High Returns
While Foreign stocks have the same risk associations as other stocks, you can sometimes invest in exchange for very high returns. For example, the RTS Index in Russia went up an amazing 72% in the first five months of 2005. In Bangkok, SETI 100 rose by 112% in 2003. While these sort of triple digit returns don’t happen every day, it is possible when you invest in foreign stocks.
What’s the bottom line? Foreign stocks are a great investment if you know what you’re doing and you know how to asses risks. Investing foreign is still a big risk and not for everyone. On the other hand if you have the money, won’t be putting yourself ‘under’ if you lose money and aren’t afraid to take a risk then you could potentially make a great deal of money. You can also invest in lower risk foreign stocks and simply have a more diversified portfolio which will protect you in case of problems with the home market.