International Investments
International investments and offshore funds can open up new ways to build your portfolio. Read our guide on international investments to learn more.
Get investment advice
The global financial landscape offers numerous ways for individual investors to reach their investment objectives beyond domestic markets.
International investments present new ways to diversify and enhance their capital growth potential.
In this guide, we explore international investments. We will look at their appeal, the intricacies involved in offshore accounts and how they can be used to form part of a successful investment portfolio.
Understanding Offshore Investment
Offshore investing is often misunderstood. It involves more than just depositing funds in overseas investments.
It is a nuanced approach to diversifying your portfolio by accessing the global stock markets. It can also form part of your asset allocation strategy.
Let's look at some of the appeals of investing internationally, as well as the risks.
The Appeal of Offshore Investing
- Diversification Beyond Borders: Investing offshore offers a chance to spread your risk across different economies and markets.
- Tax Efficiency: Many offshore locations offer tax havens. This can be beneficial for investors seeking reduce things such as Capital Gains tax.
- Emerging Market Access: Markets in Vietnam and Kuala Lumpur, for instance, present growth opportunities not always available in more developed markets.
Weighing the Risks
- Navigating Regulations: Different countries come with their own set of laws and regulations that need careful consideration.
- Political Stability: The political environment in offshore jurisdictions can impact investment stability.
- Transparency and Reporting: Varying levels of transparency in different jurisdictions can be a double-edged sword.
Investing in international stocks or asset classes can have substantial benefits. However, they can also increase investment risk.
That is why it is recommended that you seek expert advice from an investment professional.
On this page...
Use the links below to quickly find information about expat financial advice
The Art of Investing Internationally
International investment is about more than just buying stocks or bonds in another country. It's an art that involves understanding and leveraging global economic trends and market dynamics.
Let's look at some of the different types of investments and their benefits.
Embarking on the Journey
- Direct Investments: Buying assets directly in foreign markets and stock exchanges.
- Funds and Exchange-Traded Funds (ETFs): Utilising professionally managed investment funds to gain international exposure.
- Real Estate Ventures: Exploring property markets abroad for potential growth and yield.
The Benefits Unveiled
- Mitigating Domestic Risk: Spreading investments globally can reduce home-market bias.
- Harnessing Growth: Emerging markets offer a canvas for higher growth, albeit with increased risk.
- Currency Play: Investing in different currencies can hedge against domestic currency fluctuations.
Investing in international stocks or asset classes can have substantial benefits. However, they can also increase investment risk.
That is why it is recommended that you seek expert advice from an investment professional.
Cross-Border Investment: A Strategic Move
In international investment, cross-border investment focuses on opportunities in neighbouring or regional markets. This approach has become increasingly relevant in Asia’s dynamically evolving economies.
Let's look at some of the different types of investments and their benefits.
Mastering Cross-Border Investments
- Regional Specialisation: Investing in funds that focus on specific regions.
- Collaborative Ventures: Engaging in partnerships or joint ventures with local entities.
- Local Market Acumen: Gaining insights into local consumer and market trends.
Tackling the Challenges
- Cultural Navigation: Understanding and adapting to different business cultures.
- Legal Complexities: Each country’s legal framework presents its unique set of challenges.
- Market Sensitivity: Being aware of and responsive to regional market fluctuations.
For guidance on tax implications, double taxation agreements and legal requirements in offshore investing, visit the HM Revenue & Customs (HMRC) website.
Investing internationally with Holborn Assets
Like investing locally, investing in the international markets opens up a whole host of new opportunities for foreign investors. However, this also exposes investors to additional risk.
Seeking professional advice can help international investors make better financial decisions and better understand overseas market conditions and how best to invest in them.
Holborn Assets offers wealth management solutions and personalised advice for expatriates. Our advisers provide tailored, impartial advice to help you make more informed investment decisions and reach your financial goals.
Book a free, no-obligation meeting today to learn how we can help you.
Frequently Asked Questions
Yes, it’s a legal and increasingly popular strategy for diversification, provided all regulatory requirements are met.
