You do have a portfolio, dont you? Well, this is the perfect time to diversify your portfolio. In case this sounds like a foreign language we can begin with the basics so that you understand exactly what we are talking about here. In the context of this article, a portfolio is a collective term that refers to all your financial assets. These assets include your bonds, mutual fund and stocks. Depending on your investment style, you may hold your portfolio and manage it yourself. You are also free to mandate a financial expert to manage your portfolio for you. If you manage your own portfolio then this article is tailor-made for you.  You ought to learn the secrets of portfolio diversification because broadening your portfolios borders will help you make more money from your investments.

Some of the most effective ways to broaden the borders of your portfolio is to diversify. You can do this by investing in different financial instruments. A healthy portfolio should contain the right blend of stocks, bonds, mutual funds and exchange traded funds. The beauty of diversification is that it protects your portfolio and helps you earn money from different industries.

Apart from diversification, you can broaden the borders of your portfolio if you invest outside your own country. Fortunately, the stock market is a global market place so you can buy stocks in different countries without having to leave the shores of your own country. There are many advantages for people who invest in other countries and some of these advantages are discussed below.

First, you are likely to make more money in foreign markets because some of these markets are growing at a very fast rate. For instance, the economies of Nigeria and Angola are booming right now. Both countries have huge oil and gas deposits and both countries are enjoying the stability that comes with a stable democratic system. Again, there are many foreign countries doing business in both countries. This is why the stock market in these countries is booming and this is why investing in these countries is a great way to broaden the borders of your portfolio.

If you consider the stock market in developing countries volatile, you have other options. Countries like Germany, Japan, Turkey, Mexico and Brazil have country funds for both local and foreign investors. These funds are relatively safe investment options and they offer very good returns to the investor.  You can also consider investing in regional funds offered by some Asian and European countries as well as index funds from emerging economies of Turkey, Indonesia, India and Malaysia. Some of the countries on this list have a stable economic system, so the chances of losing your money are very slim.

In the investment world, it makes sense to think outside the box. If you invest only in your country, you will miss great opportunities outside your immediate environment. Finally, broadening your portfolios borders ensures that you have a truly global portfolio. This gives you the opportunity to enjoy the best of the local and the foreign market and this means more long-term profit for you.

Broadening Your Portfolios Borders