What is International investing?
Apple Inc., Alphabet, Amazon, Netflix – stalwarts, right?
But they are not listed in India!
Major companies, though selling their goods and services in India, are not listed on the Indian stock exchange. If you want to invest in these companies, you need to take the route of international investing. But do you know what international investing entails?
What is International investing?
International investing means investing in companies that are being traded in other countries. In India, you can invest internationally through the following routes:
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Stock trading in international stocks
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International Mutual Funds
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International Exchange Traded Funds (ETFs)
You can choose to invest in international markets through one or more of these routes. But why do you think international investing is beneficial?
Minimize dependency on the domestic economy
Not all economies move in tandem with each other. When you invest in international funds, you cut down on your dependency on the Indian economy. You can explore the growth of other economies too. If the Indian economy is falling or not growing considerably, other economies might be performing better. Your investments would, thus, not be hampered considerably since they do not entirely depend on the domestic economy only.
Bank on the growth of international economies
Economies of different countries grow differently. And each economy has different sets of investment opportunities. One needs to study and check the global universe to participate and gain from growing economies.
Get to invest in globally recognized companies
As mentioned earlier, many globally-recognized, reputed companies are listed in international countries. International investing, thus, gives you access to these companies and allows you to invest in them. This will give an opportunity for creating wealth over a longer-term.
Diversification of the portfolio
Lastly, international investing allows you to diversify your portfolio geographically. You can invest in different countries and diversify your investments across different economies. This cuts down on the risk of investing only domestically and boosts the profit potential.
Key points to consider:
International investing is, thus, quite a lucrative avenue that you can explore. However,
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One should remember that international investing has its risk potential too. If international economies tumble, investors' investments might take a beating.
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Similarly, One is exposed to the risk of currency fluctuation too. So, know the risks before investing in the international markets.
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Understand the taxation and charges.
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Ideally, an international investing route can be opted only after having well-diversified exposure to domestic schemes.
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Keep time horizon long term.
Disclaimer: Investment in securities and other investment products is subject to market risks; read all the related terms and documents carefully before investing.
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