Question

What is international equity fund and the reasons to invest internationally

Answer 1

An international equity fund is a fund that is invested in stocks
of companies that are headquartered outside the United States (U.S).
The following are the reasons why investors should invest internationally:
1) International funds are a way in which the investors can diversify their portfolio.
In other words, investing in non-U.S companies is a good way to diversify the portfolio.
2) In addition, investors have to look at international companies outside the U.S because
of the phenomenon of globalization. Globalization refers to the phenomena where there is
free trade and there are booming private companies throughout the world. In other words,
many nations exercise power and for-profit companies exercise global power.
For example, Coke and Toyota sell their products all across the globe and be considered as
globally competitive companies.