Foreign investment is significant in diversifying your portfolio. These tips to invest money in overseas stock markets are unbeatable.
Everyone knows that portfolio diversification is the smart move to protect your investments. You should never invest all your money in one stock & even in one market.
According to a post published in CNN, new investors should park about a third of their portfolio in foreign stocks.
However, the exact amount to be invested in foreign stock markets can vary on the basis of your risk tolerance. An easy access to international stocks can help you to make money in the long run.
You can participate in the growth story of even those companies that are not listed in your domestic stock markets. Here are 10 amazing tips to invest money in international stocks:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Know Your Age, Investment Goals & Risk Tolerance
It is one of the most common tips to invest money in overseas stock markets. Every age is not a perfect age for investing in stock markets. A younger individual is considered fit for investing in foreign stocks.
It is perhaps due to their ability to handle any worst case scenario. If you are in your 20s or 30s, investing abroad should not be a big deal for you.
Individuals in this age group can easily stay invested for long term goals. They are also known to have higher risk tolerance as compared to old age individuals.
On the other hand, senior citizens can’t invest their funds for long term goals. It is perhaps due to their growing age & deteriorating health. They can better invest their retirement funds in various other safe & secure options.
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