Offshore Investing



International Investing
They say that if you are looking at long-term investment you should have at least half of your money invested in overseas securities. The main reason for this is to reduce risk. That is, make sure you diversify to local shares, as well as overseas.

Offshore (overseas investments or international investments) can be attractive because it provides a means of further spreading investment risk. This is because overseas markets may have cycles which differ from the local market. In addition, there is diversification through exposure to a different currency.

Many smaller the USA investors put all their money into the the USA stock market and don’t put any effort into looking at overseas investments. For safety's sake, let alone growth prospects, it is best to look at investing at least 50% of your portfolio into overseas investments.

In general, the overseas market offers a greater opportunity for growth and the view is that having some of your funds overseas definitely reduces risk.


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