What is an International Fund?
An international fund is a mutual fund that invests in stocks or securities of companies headquartered outside of the country of the investor. Smart Money Magazine and other investment publications and advisers suggest that investing in an international fund is a great way to diversify a portfolio. However, because investors may not be as familiar with foreign markets as they are with their own, there are a number of important things to keep in mind. The advantage of investing in an international fund is that often the economies of different countries act in reverse of each other. In other words, if one economy is struggling, another may be thriving because they may be depending on different income streams. Therefore, an international fund can offer some security when a domestic fund begins to underperform. Despite this generality, there may be times when all markets underperform, such as the case with a worldwide recession or depression. It is wise, in international investing, to alwa
Diverse investment opportunities are becoming more important than ever for investors, which is why many are now looking to international funds to expand their portfolios. But because investing overseas can seem too foreign and unfamiliar, some shy away from this potentially beneficial investing experience. So before you miss out on this great diversification tool, take some time to learn more what they are and how they might benefit your portfolio. What Are International Funds? Those who are unfamiliar with overseas investing should know that this type of fund is very similar to the domestic ones. Basically, the major difference is that you investing in the stocks of foreign companies those that most likely only own non-US securities. Why Invest in International Funds? Some take advantage of these types of funds for the following perks they offer: • Greater portfolio diversity. Because our economy stretches beyond the walls of the United States, taking the initiative to invest in inter
