Question

do you think it is advisable to invest internationally? Explain your position. If you do invest internationally which markets/countries you are likely to invest in? Will you be investing directly or through a mutual fund or other portfolios comprised of foreign securities but offered by Canadian financial institutions?

Answer 1

Yes, it is advisable to invest internationally and this is mainly due to two reasons. First of all by investing internationally you will be able to mitigate your risks by diversifying. This will boost the quality of your portfolio. Secondly you will be in a better position to fetch higher returns as you will be able to capitalize on multiple or different economies.

I do invest internationally and the markets/countries in which I invest more are developed economies like Canada, USA, Germany, UK etc. The risk exposure is less in these developed economies and it even gives me an opportunity to increase my returns as well.

I invest through a mutual fund because I do not have the in-depth knowledge about the international securities and the markets in the countries in which I invest in. As such investing through mutual funds is a safer option and my investments are managed by experts.