International Investment Strategy International Strategy Investment International Strategy And
Post on: 16 Март, 2015 No Comment
Before getting into the strategies of international investment, we would first rather know what exactly is an international investment? International Investment could be explained as investment of money or capital outside the physical boundaries of a nation.
The strategies are basically of two types one being active international strategy where you yourself invest your time and interest for strategizing your investment by carrying on a deep exploration about the various opportunities available in the international market and considering the one most profitable for you and other being a passive international investment strategy. where you can deploy this responsibility into the hands of professionals.
These professionals specialize in particular segment of these financial markets like strategy for bond investment. strategy for investment for retirement benefits. strategy for investments into assets etc.
The main reasons for people opting for international investments are as follows:
1. Highly exploited investment markets within the physical boundaries of the country.
2. Opportunity to erase the element of risk from the investment by investing in a market where the volatility is quite low.
3. Ability to choose markets where the interest rate of returns is quite high.
4. Chance to avoid the higher hurdles in the domestic market by investing in a market with lesser restrictions.
5. Another reason for consideration of international investment is high profits which are capital in nature.
6. Stability of returns from investment is also a major reason for this consideration.
Points to be considered in a strategy formulation are as follows:
1. Investment in various different kinds of securities. As investment in one single area/ instrument/ project etc. might be carrying a very high risk factor with it.
2. One has to have a detailed record of all the downfalls and up runs in the international market where one is going to invest to have broader vision and idea about that particular segment.
3. One has to take into consideration the various external factors like environment, which involves factors like cultural, political, legal, social etc. which might have a heavy impact on the market or the instrument you are investing in.
4. One has to have a record of the updated version of the all the above mentioned information and a step by step application of all these strategies as they can’t be put to practice all at the same time.
5. Patience is a virtue of the intelligent, so it would be best to have a good level of patience while expecting returns.