You are planning to re-balance the equity portion of your 401K. it has been 100% domestic (US) but you know wish to diversify. You are looking at several multi cap international equity funds. Assuming performance, management, etc are all acceptable and diversification is your main goal, you would likely prefer:
Yes, i would prefer international investments as they would help me diversify my portfolio by providing me exposure to international equities. International diversification should be limited to 20 to 25% of my money. Diversifying internationally helps me to invest both the developed as well as emerging economies.
As my portfolio is already invested in developed markets , i can invest in emerging markets where the grwoth potential is huge and my portfolio can gain a lot by this process, as diversfication is my main goal. This goal shall also be achived and return will be inflated and risk shall be diminished.
Get Answers For Free
Most questions answered within 1 hours.