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Going Global Through Mutual Funds |
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.
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