3 Advantages to International Investing

International investing can provide you with a number of unique benefits. Here are some of the advantages you can gain through international investing.

1. Diversification

One of the major benefits of international investing is that you can diversify your portfolio. Many investors choose to invest only in their domestic financial markets. While this can work at times, during a negative economic period, all of the domestic financial markets could be devastated. If all of your money is tied up in one country, you are putting yourself at great risk. By choosing to invest in other areas of the globe, you will be able to withstand economic troubles in your home country.

2. Potential for Growth

Another advantage that you will receive through international investing is growth potential. There are many underdeveloped markets out there that are in the middle of large periods of growth. If you can successfully identify these regions of the globe, you could bring in a substantial return on your investment.

3. Many Different Options

In today's investment market, there are many different options for you to choose from if you want to get involved with international investment. You could invest in mutual funds, exchange traded funds (ETFs), American Depositary Receipts (ADRs) and a number of other investment vehicles.

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