| |
Going global through mutual funds
By Tony Reed
There are more than 13500 different publicly traded companies in the world today, and there are over 700 more companies expected to go public within a year. In addition, every major developed country offers investors various bonds to invest in. All of this makes for a lot of different investments and plenty of choice. Investors can take advantage of this choice through a good global balanced fund that invests in bonds and stocks or a global equity fund that invests in stocks all around the world.
A global equity fund invests in stock markets around the world. These funds will have a portion of their investments invested in North America. Europe, and Asia. Some of these funds will own hundreds of securities in order to participate in the growth prospects of many firms while diversifying the risk associated with investing in different companies. A good global equity fund will be a foundation for a well-diversified mutual fund portfolio for almost any investor. Investors could consider including the AGF International Value Fund, the BPI Global Equity Fund, or the Fidelity International Portfolio Fund in their portfolios.
A global balanced fund is a fund that invests in both stock and bond markets around the world. These funds will also always have a portion of their investments invested in stock and bond markets located in North America, Europe, and Asia. They are more conservative than global equity funds because they invest in a combination of stocks and bonds, which affect the fund's performance. Over the long term these funds will provide a lower rate of return for investors but they will also exhibit a lot less risk than a global equity fund. They exhibit less risk because bonds are less volatile than stocks; they do not decline in value to the same magnitude or at the same time as global equity funds. A conservative investor should find a good global balanced fund that will serve as a good foundation for a diversified portfolio.
About the Author
About the author: Tony Reed is an expert in investment and writes on the topic of Investing in Mutual Fund , visit his website Stock Investing & Trading Strategy for more information.
This article is free for republishing as long as you leave the article title, author name, body and resource box intact (means NO changes) with the links made active.
Article Source: http://www.simplysearch4it.com/article/27917.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/27917.html" as shown above and make it hyperlinked. |
| Some other articles by Tony Reed | Higher income from high yield bonds
To understand high yield bonds, let's define what a bond is. A bond is an interest-bearing investment that obliges ...
Life insurance as an investment
Term insurance provides coverage for a pre-specified period. For example, term insurance is designed to protect a mortgage or provide income for ...
How to boost your stock returns while lowering your risk
An options strategy called Covered Call Writing is a conservative strategy designed to reduce risk and increase income when investing in stocks. Briefly stated, stock options are contracts in which you buy or sell ...
Market timing with your mutual funds
When investing in bonds, stocks, or mutual funds, investors have the opportunity to increase their rate of return by timing the market - investing when stock markets go up and selling ...
How to obtain a second mortgage loan?
A second mortgage is a loan that is secured by the equity in your home. When you obtain a second mortgage loan ...
|
|
| |
