Why you need to invest overseas
Many clients that I meet for the first time don’t really know much about investing, let alone overseas investing, for many of them they consider it to be ‘risky’.
The thing is, if you have a superannuation fund it is likely that some of the investments within there (whether you have actively chosen them or not) will be invested internationally, so by default you are probably already investing internationally.
Here’s the thing, Australia makes up approximately 1.7% of the total world economy. A lousy 1.7% if you are only investing in Australia! From a diversification perspective you are limiting yourself to a very small corner of the world.
Investing overseas doesn’t mean that you need to open an international bank account and try and buy shares direct, there are so many other options available to you. You are able to invest internationally through the same ways that you invest in Australia and you can do so in Australian dollars. There are hundreds of international managed funds available to you for a wide range of countries and industries. These professional managers specialise in an area and will make the investments for you so that you know that it is being handled by professionals who understand the countries and their respective economies. There is no way for any one person to keep their finger on the pulse of every country and in every industry, so buying into different managed funds that specialise in different areas will ensure that you can invest offshore without the headaches that can go along with it.
If you want to have a chat about your options when it comes to investing get in touch, we are always happy for you to pick our brains.
This post is from our resident Financial Planner Cara Brett, check out her details in the About Us section.