Consider Diversification Into Asian Markets
More than four billion people live in the continent of Asia, which comprises about one third of our human population. In the last decade, economic expansion has created improvements in infrastructure, business and industry, not to mention building up a strong middle class in many Asian nations. In addition, this boom also provided many investment opportunities for Americans looking to expand their financial portfolios.
With all of the economic upheaval of the last few years, investors often look for the safest possible way to obtain a return on an investment. Mutual funds and also ETFs (exchange traded funds) are both diversified types of investments, which mean that rather than placing all money buying stock in one company, many companies are included in the fund. Another advantage is that these funds are set up and managed by professionals, which makes it easy on investors.
When investing in Asia, you have many excellent options. This includes either placing your investments in a single country or in a regional Asia fund that includes multiple nations. You can focus solely on China, for example, which will include investments in mainland China and Hong Kong. There will be a variety of industrial sectors included in your diversified mutual fund, generally energy and technology are top sectors, but industry and real estate are a few of the others commonly seen in China funds.
Another option is to invest in the renminbi, which is China's currency. A currency mutual fund is one that includes a number of financial institutions within its holdings. There are some advantages to investing in currency. For one thing, currency funds are not tied to the up and down movement of stocks and bonds, so if stocks are not doing well, currency still can remain stable. Another advantage is that currency funds are not highly leveraged, which lowers the risk.
Of course, if you prefer not to hedge your bets solely with China, you can opt for an Asia fund that includes investments in many countries. China typically is still a part of this multi-Asian fund, but other countries that might be included will be nations such as Taiwan, Singapore, Japan, Philippines, Malaysia, Indonesia, Vietnam and India. Again, these Asia funds are diversified much like a China fund with investments in energy, technology, telecommunications, banking and other areas.
In addition to Asia, there are many more global investment opportunities such as a BRIC fund which includes the Asian nations of India and China, as well as Russia and Brazil. You also can look at Africa-based funds or those based on countries in South or Central America.
With all of the economic upheaval of the last few years, investors often look for the safest possible way to obtain a return on an investment. Mutual funds and also ETFs (exchange traded funds) are both diversified types of investments, which mean that rather than placing all money buying stock in one company, many companies are included in the fund. Another advantage is that these funds are set up and managed by professionals, which makes it easy on investors.
When investing in Asia, you have many excellent options. This includes either placing your investments in a single country or in a regional Asia fund that includes multiple nations. You can focus solely on China, for example, which will include investments in mainland China and Hong Kong. There will be a variety of industrial sectors included in your diversified mutual fund, generally energy and technology are top sectors, but industry and real estate are a few of the others commonly seen in China funds.
Another option is to invest in the renminbi, which is China's currency. A currency mutual fund is one that includes a number of financial institutions within its holdings. There are some advantages to investing in currency. For one thing, currency funds are not tied to the up and down movement of stocks and bonds, so if stocks are not doing well, currency still can remain stable. Another advantage is that currency funds are not highly leveraged, which lowers the risk.
Of course, if you prefer not to hedge your bets solely with China, you can opt for an Asia fund that includes investments in many countries. China typically is still a part of this multi-Asian fund, but other countries that might be included will be nations such as Taiwan, Singapore, Japan, Philippines, Malaysia, Indonesia, Vietnam and India. Again, these Asia funds are diversified much like a China fund with investments in energy, technology, telecommunications, banking and other areas.
In addition to Asia, there are many more global investment opportunities such as a BRIC fund which includes the Asian nations of India and China, as well as Russia and Brazil. You also can look at Africa-based funds or those based on countries in South or Central America.
About the Author:
Cleveland Jernigan likes blogging about investments. For further information about different types of investments like alternative energy investments or to find out more about China investment funds, check out these fund websites now.
