x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message

Investing 101 Mins Read

The Basics of Investing in International Markets

investing-101-kristal.ai-banner-3

International investing, as the name suggests, is a strategy in which investors choose global investment instruments in an effort to diversify their portfolio. This also allows them to spread their investment risk across foreign markets and companies, increasing their scope for higher ROIs. This can be extremely beneficial for investors who want to mitigate the risk of investing within their own country due to a turbulent market. In this article, we will tell you all about international investing, the factors that you should consider while investing in international funds, and whether international investments actually mitigate your risk.

Factors to Consider While Pursuing International Investments

As an investor, you can choose from a wide selection of stocks, bonds and mutual funds when considering international funds. One can even choose newer investment avenues such as cryptocurrency if one is so inclined. However, before you pick a specific investment, you must consider an array of factors that determine whether an investment is even worth your while or not.

International Government Debt

Governments from different countries issue a certain debt in order to carry out their financial responsibilities. This is true for both developed and emerging countries. However, with developed countries, one can expect a lower level of risk. As a result, investors looking for a more conservative portfolio can select investment instruments from such countries. On the other hand, emerging countries offer immense potential but also offer higher risks, making them ideal for investors with a higher risk appetite. In order to understand whether you should invest in a certain country’s financial instruments, you should analyse their credit market ratings to know what to expect.

International Indexes

Global indexes are a part of the equities market and can be very lucrative investment instruments. Most of these indexes include stocks from all parts of the world, with the Vanguard Total World Stock Index Fund and FTSE Global Cap Fund Index being leading examples. Equities belonging to developed markets typically offer lower risks than emerging market’s equities. However, the latter is one that is considered to be in high demand amongst most international investors.

Risks Associated with International Investing

Some of the risks associated with international investments include the following:

  • Low liquidity
  • Any significant economic, political or social events that disrupt the market
  • Changes in market value
  • Fluctuations in exchange rates between different currency
  • Varying market procedures and operations
  • Less access to vital information

Thus, the question arises, how much risk mitigation is possible with international investments? As an investor from Asia, it is crucial to understand that though international instruments belonging to the US may seem like steady investments (as the US is a developed nation), the dangers of doing so lie in the fact that US stocks often tend to underperform when compared to international ones. Of course, the reverse has been true at certain periods too, however, a long term look at the market can show you that this is more often than not the case with US stocks. So, if you are looking to invest internationally, do not be swayed by the promise of the American Dream and attaining it in your country. Consider non-US stocks in your portfolio instead. Including as little as 10% of such stocks in your portfolio can offer you the diversification you desire, along with good returns over a long term.

Benefits of Investing Internationally

If you are wondering how international investments can benefit you, the following are a few ways to consider:

  • Many countries make it a practice to offer certain tax benefits to foreign investors. These countries are known as tax havens.
  • Investing off-shore is a way to ensure that you can protect your assets from seizure, should you encounter any trouble in your homeland.
  • Investing in international instruments can also give investors a degree of privacy when it comes to their funds.
  • This is a great way to diversify your portfolio.

Cons of Making International Investments

There are a few downsides to international investments that you must consider as well. These include:

  • International investments can be rather costly to set up. This cost depends on the country you are looking to invest in, however you can expect it to not be inexpensive.
  • Different countries have different tax laws when it comes to their own citizens investing abroad. You should find out about your country’s laws before investing so that you do not accidentally make any mistake that may cost you further.

The Last Word

As a new investor with diversification on the mind, you can certainly consider index funds, mutual funds, stocks, and bonds that belong to international markets. These financial instruments are the most accessible to international investors and you will find many options that align with your risk profile.

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

Other stories you might like

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

Proceed as Private Wealth

STOCKS

Seamless investing enabled by easy and instant access to a wide range of cross border stocks of acclaimed and high potential companies, handpicked by our expert investment committee.

For investors who desire enhanced returns while co-owning shares of global companies.

*The range of stocks will be made accessible, post login

OVERVIEW

Only the best

A range top performing and high potential stocks carefully selected by our seasoned investment committee

Instant Access

Wide range of global stocks made easily accessible with a single click

Diversity

Companies from varied sectors and fields made available for investment enabling clients to diversify investments and effectively mitigate risks

Innovative

High potential companies leading with disruptive technologies made available to clients enabling them to future proof their investments

THEMATIC STRATEGIES

Enabling clients to invest in trending themes like FAMANGThe FAMANG Kristal invests in Facebook, Apple, Amazon, Netflix and Alphabet’s Google stocks. Assets are carefully chosen by an algorithm in order to deliver a superior returns based on past performance. The strategy is rebalanced every quarter., TECHGlobal Technology ETFs is a genetic algorithmic strategy focussed specifically on the Technology sector., ESGProvides exposure to higher rated environmental, social, and governance (ESG) companies while accessing large- and mid-cap stocks in Europe, Australia, Asia and the Far East., etc. with a single click or just create your own thematic basket.

Future-proof your portfolio and capture emerging investment themes.

*The range of Thematic Strategies will be made accessible, post login

OVERVIEW

Explore and Identify

Select from a range of expertly designed trending and diverse themes

Efficient Execution

Enabling easy exposure to your preferred themes without the hassle and costs of individual security selection and execution

Only the Best

A ready-made collection of Kristals that derive the best of the specific asset class or theme

Unique Mix

An optimised blend of ETFs and individual counters, enhancing efficiency and profitability

Contact our Relationship Manager
ALTERNATIVE INVESTMENTS

Diversify your portfolio with exclusive Private Equity, Pre-IPO deals, VC Funds & other investments like Bitcoin, Gold, Hedge Funds and many more.

Kristal fractionalizes difficult-to-access deals and opportunities.

View Alternative Investments

OVERVIEW

Instant Access

A wide range of alternative asset classes such as Gold, Bitcoins, Hedge Funds and many more; readily made available

Risk Management

Enables investments in diversified assets hence spreading the risk

Easy Tracking

Enables you to get a consolidated view of investments in all assets at one place, hence facilitating easy monitoring and tracking

Exclusive Deals

Access to exclusive Venture Capitalist, Startup as well as pre-IPO investment opportunities

Low Investment Tickets

Facilitates fractionalization of investments in deals

Contact our Relationship Manager
FUNDS PLATFORM

Professionally managed funds with active investment strategies, screened for you by our investment committee to diversify your portfolio.

Enabling clients to access exclusive investment strategies.

View Funds

View Funds

OVERVIEW

Access

Provides Access to Professional Fund Managers

Low Investment Tickets

Facilitates fractionalization of investments in funds

Diversity

A wide spectrum of investment strategies ranging from Arbitrage to Credit to Hedge Funds and many more

Fees

No additional costs are charged by Kristal.AI

Exceptional Performance

Funds with an impressive track record and potential for high profitability

Leverage

Benefits from insights of the expert selection and advisory team

Easy Management

No time consuming management of portfolios

Contact our Relationship Manager
TAILOR-MADE PRODUCTS

Customize products based on your market outlook and specific needs across equities, bonds, gold and more.

For investors looking to enhance portfolio yield based on market views.

*The range of Tailor Made Products will be made accessible, post login

OVERVIEW

Enhanced Earnings

Structures with potential to enhance portfolio yield based on market movements

Customization

Product features can be designed to articulate investor views

Fees

A flat and transparent fee structure like nowhere else

One-Click Access

A single feature ‘Ideas’ enables you to access recently launched and trending market opportunities

Contact our Relationship Manager
BUILD YOUR OWN KRISTAL

Can’t find what you are looking for? Create your own exclusive investment strategy with risk management & periodic reporting.

For seasoned investors who prefer to design their own portfolio.

OVERVIEW

Empowered Investing

Enables clients to create their own custom portfolio based on their unique needs

Unlimited Choice

Access to all possible exchange traded assets

Flexible Management

Flexibility in delegating the portfolio management role to us or actively taking up the day to day investment decisions, in your custom Kristal

Custom Fee Structure

A simple, transparent and a customized fee structure

Access to Expertise

Custom performance reporting as well as advisory support

Contact our Relationship Manager