Experts say that global and international mutual funds could represent a world of opportunity for investors.
Foreign companies now account for half of the global stock market capitalization, up from about a third in 1970, and are dominated by many major industries such as oil and gas, wireless communications, and building construction. By foreign companies.
But despite the investment opportunities these companies offer, research shows that international equities are still significantly underrepresented in most US portfolios. It is estimated that Americans, on average, own only about 5 percent of their portfolios in foreign stocks and funds.
Even if they don’t realize it, the lives of Americans are affected by global corporations. Maybe it was the medication you took before bed, the car you took to work, or the soft drinks that accompanied your lunch. These were all potential products for companies operating outside of the United States.
According to ING Funds, the US retail mutual fund unit of ING Group, one of the largest financial services institutions in the world, international stock markets offer investors exposure to many of the major industries that dominate countries other than the USA.
The Mutual Fund Unit recently launched a “Going Global” campaign to introduce more people to international investment.
“ING is working hard to help more people understand how the investment world is changing,” said Bob Bulwer, President and CEO of ING Funds. According to Bollwer, “Those who don’t think universally can get lost.”
Just as the domestic portion of an investor’s portfolio is usually designated to include a range of investment options, investors may wish to apply the same logic to their international portfolio, choosing a number of sub-classes of assets to better prepare themselves for changing conditions. From the international market. . One way to get started is for investors to think of global and international mutual funds.
Global funds can provide exposure to opportunities around the world, both internationally and domestically. International mutual funds may be more suitable for people looking for purely foreign property to supplement their existing national portfolio.
Between global and international funds, an investor may consider:
Market style. Determine if you are looking for shares of value, growth, or a combination of the two in your international portfolio.
Market value. Choose from small, medium, or large “volume” firms on the basis of the total dollar value of all their outstanding shares.
Private funds. Designed for investors who want to target their investments geographically or include certain major markets, such as real estate. Some investors may want to consider a fund that includes a diversified portfolio of international holdings. An international fund of funds provides investors with a base in a variety of major international asset classes with a single investment.
For example, the ING Diversified International Fund is a fund of funds that encompasses a range of international market sectors, including international growth, international value, international small cap stocks, and emerging markets. With core portfolios managed by some of the world’s most respected international portfolio managers, the fund makes it easy to incorporate international asset allocation into your investment plans.
As a recognized leader in global asset management, ING Funds has focused on providing a range of global and international investment opportunities to US investors through mutual funds, partly due to its access to more than 700 investment professionals. Around the world with dynamic knowledge. From Europe, Asia Pacific and America market.
The company’s latest white paper, “Seeing the Big Picture: A Global Approach to Investing,” provides an introduction to a variety of aspects of international investing.