Learn How To Invest In Asian Markets
These days, finding a place to invest your money is highly difficult. Traditional certificates of deposits and savings accounts yield mere pennies on the dollar, and investing in American and European economies appear to be stagnant or even unstable. Perhaps a better option would be to invest in emerging markets, which have grown significantly in the last few decades.
One indicator that helps investors decide what countries to bet on is the gross domestic product or GDP. In the United States, we had negative growth in both 2008 and 2009, and while our GDP is slowly building back up, it certainly isn't as strong as in past years. Our situation is certainly not as dire as Greece, which posted a seven percent loss in GDP in 2012. But there are many other countries that have posted significant increases every year for the last several years, particularly countries in Asia.
China is an excellent example of a country that has increased GDP while other industrialized nations have declined. In fact, China's GDP growth has been at about 8 percent or higher for several years. For investors, this looks to be an area that will continue to grow and offers an excellent opportunity for building up your portfolio.
Short-term investments might seem like a quick way to make some cash, but it if you are planning for retirement, it is wise to consider longer term investing. Therefore, look for Asia funds or China funds that provide long-term appreciation. There are many different choices, including China funds that might focus only on mainland China or perhaps funds that include investments in Hong Kong, as well. In addition, there are Asia Pacific funds that include China as well as emerging nations such as India, Philippines and Malaysia.
When you select an Asia fund or China fund, be sure to look at which specific companies and industry sectors are being included in the fund. These sectors will include information technology and energy, as well as investments in industry, telecommunications and utilities among others. If you are investing in a broad Asia fund, you also should pay attention to the geographic weight of the fund, which shows the percentage of investment in each of the countries included in the fun.
Aside from investing in different types of Asian businesses and industries, one can also invest in a bond fund that is based on the strength of the Renminbi, China's currency. This type of bond fund includes investing in the currency itself as well as various banks throughout China and possibly Hong Kong. The rate of return is usually between about 2 to 3 percent, but can be slightly higher. Some project that the currency will continue to gain strength and the return on investment will in turn be higher as well.
One indicator that helps investors decide what countries to bet on is the gross domestic product or GDP. In the United States, we had negative growth in both 2008 and 2009, and while our GDP is slowly building back up, it certainly isn't as strong as in past years. Our situation is certainly not as dire as Greece, which posted a seven percent loss in GDP in 2012. But there are many other countries that have posted significant increases every year for the last several years, particularly countries in Asia.
China is an excellent example of a country that has increased GDP while other industrialized nations have declined. In fact, China's GDP growth has been at about 8 percent or higher for several years. For investors, this looks to be an area that will continue to grow and offers an excellent opportunity for building up your portfolio.
Short-term investments might seem like a quick way to make some cash, but it if you are planning for retirement, it is wise to consider longer term investing. Therefore, look for Asia funds or China funds that provide long-term appreciation. There are many different choices, including China funds that might focus only on mainland China or perhaps funds that include investments in Hong Kong, as well. In addition, there are Asia Pacific funds that include China as well as emerging nations such as India, Philippines and Malaysia.
When you select an Asia fund or China fund, be sure to look at which specific companies and industry sectors are being included in the fund. These sectors will include information technology and energy, as well as investments in industry, telecommunications and utilities among others. If you are investing in a broad Asia fund, you also should pay attention to the geographic weight of the fund, which shows the percentage of investment in each of the countries included in the fun.
Aside from investing in different types of Asian businesses and industries, one can also invest in a bond fund that is based on the strength of the Renminbi, China's currency. This type of bond fund includes investing in the currency itself as well as various banks throughout China and possibly Hong Kong. The rate of return is usually between about 2 to 3 percent, but can be slightly higher. Some project that the currency will continue to gain strength and the return on investment will in turn be higher as well.
About the Author:
Cleveland Jernigan likes blogging about investments. For additional info about Asia Pacific investments or to learn about Asian dividend funds or alternatives to an Asian Pacific bond fund, go to these fund websites.
