International diversification
INTERNATIONAL DIVERSIFICATION
There is a basic principle in finance and portfolio management, and this is, to obtain the greatest benefits with the resources available, this principle leads to a fundamental problem, which is to determine which assets should be invested to maximize the profitability of the capital available.
Previously was limited when it comes to investing insight, which consisted of single and only an investment in domestic assets, today the borders of investment have expanded and we have the possibility to invest in foreign assets and have an internationally diversified portfolio.
The advantage of investing internationally is at many points; one of them is open to a number of financial instruments that provide opportunities for investment funds with a clear maximization of profitability.
A very important point to consider is that international diversification benefits considerably to investors in countries in which the stock market has a significant level of development, this originates due to the investor to power invest internationally product best assets (financial instruments) that may offer you a higher return and lower risk.
Why diversify?
The logic of diversification can consider it in simple terms and with a very simple example. If you wish to have a 'very safe' portfolio, a good choice would be to invest all resources in instruments of the State. Invest all the resources in a very active, however is to say that we are putting all the eggs in one basket, but still a fire in the hold would destroy all the eggs, but on the other hand, if they are scattered in many baskets and many wineries only a simultaneous fire in all the wineries would affect the total resources.
The concept of diversification goes beyond investing resources in different instruments within the country; the logic of diversifying a portfolio by investing part of resources in different countries is not different from the logic of diversifying a portfolio by
There is a basic principle in finance and portfolio management, and this is, to obtain the greatest benefits with the resources available, this principle leads to a fundamental problem, which is to determine which assets should be invested to maximize the profitability of the capital available.
Previously was limited when it comes to investing insight, which consisted of single and only an investment in domestic assets, today the borders of investment have expanded and we have the possibility to invest in foreign assets and have an internationally diversified portfolio.
The advantage of investing internationally is at many points; one of them is open to a number of financial instruments that provide opportunities for investment funds with a clear maximization of profitability.
A very important point to consider is that international diversification benefits considerably to investors in countries in which the stock market has a significant level of development, this originates due to the investor to power invest internationally product best assets (financial instruments) that may offer you a higher return and lower risk.
Why diversify?
The logic of diversification can consider it in simple terms and with a very simple example. If you wish to have a 'very safe' portfolio, a good choice would be to invest all resources in instruments of the State. Invest all the resources in a very active, however is to say that we are putting all the eggs in one basket, but still a fire in the hold would destroy all the eggs, but on the other hand, if they are scattered in many baskets and many wineries only a simultaneous fire in all the wineries would affect the total resources.
The concept of diversification goes beyond investing resources in different instruments within the country; the logic of diversifying a portfolio by investing part of resources in different countries is not different from the logic of diversifying a portfolio by