International investing

It’s important to remember that different geographic areas offer different advantages for investors, and indeed have different risks.

When you get started with investing, one of the most important considerations is where in the world you want to invest your money. And while there’s no quick answer, different geographic areas of the world offer different advantages, and indeed have different risks, for investors.

Asia is the one global region set for a massive expansion both in economic and population terms – but have investors missed the boat to benefit from this growth? Despite coronavirus fears, the future still looks bright for investing in Asia.

Being a successful investor is dependent on a combination of factors - there’s no single winning formula. Yet experts are unanimous that an essential element of any portfolio is diversification.

At its most basic, having a diversified portfolio is simply the investment version of the phrase ‘don’t put all of your eggs in one basket’. But true diversification is more than just buying shares in lots of different companies. A properly diversified portfolio usually includes different types of assets, as well as investments in different types of businesses from different areas of the globe.

A performance horizon of five years is generally accepted as a good barometer for a fund’s overall success. A one-year time scale isn’t long enough to judge whether a fund looks like a good long term bet for your money.

Becoming a DIY investor means making your investment decisions without having to pay for financial advice. This might seem a daunting prospect, but this article will help you by equipping you with the basics of portfolio construction, management and strategy.