Investing abroad
Introduction|
Course|
Q&As |
Recommended reading|
Quiz |
Introduction
Context
One of the most effective types of diversification is geographical. Historical evidence suggests that spreading your investments between the UK and faster-growing foreign markets can significantly reduce your risk, while boosting your returns. But this advantage is offset by the greater difficulty and expense of investing abroad directly. It is therefore important to choose your route into foreign investment with great care.
Prior knowledge required
You will need to be familiar with unit and investment trusts, indexed funds, portfolio management, the rudiments of how stock markets work, and how to use the services of offline and online brokers.
Contents
- Why invest abroad?
- Risk and reward in foreign investment
- Custody risk
- Currency risk
- UK companies are foreigners too
- Foreign unit and investment trusts
- Picking foreign trusts
- How to make the most of trusts
- Tracker funds for foreign markets
- Foreign companies on the London exchange
- American Depository Receipts
- Investing in American companies
- Investing in European companies
- Investing in Asian companies
- Investing in other markets
- Dividends and withholding taxes
- Markets go global
- Conclusion
