International FundsInternational funds or foreign funds can help to diversify your portfolio. These funds invest in equities that are outside of your home country.
Many people get international funds confused with global funds. The big difference is that global funds invest in all countries including your own, foreign funds however only invest in countries outside your own country. Pros the advantage to investing one of these funds is diversification. It allows to be diversified over many different countries and economies. It is also proven that portfolios that invest in both national and international stocks fair better than portfolios that invest in just national.
Cons these funds contain much more risk than other funds. They have the risk of currency fluctuations, economic regulations, and political leadership. Because of that these funds tend to be more volatile. |
