September 27, 2011

Investment, Opportunity?

Invest abroad would exposes individual with outside tense and unexpected  outcome. Market sentiment and irrational influences has brought down value to zero. However, to invest outside Malaysia, there are several characteristics and techniques need to be scrutinized.

a) Invest in attractive sector outside which not found inside
b) companies offer global exposure
c) companies that derives revenue almost from part of the world

However, research must be done thoroughly before any outside investment undertaken. The existence of internet does make the investment  becomes more sophisticated, but to international investor, more exposure to the fund itself is vital in making decision. " Investing in overseas market come with high potential, but be mindful of the risk inherent in venturing beyond  the familiarity of your home shores".

Risk:

a) Currency - major risk. The use of forward contract can help to hedge out this particular risk. To mitigate risk, diversifies portfolio across different  markets.
b)  country political
c) liquidity risk

Where?

Try to invest in establish, accepted, widely accessible,authorized and popular and also liquid, large-capitalization markets such as US,UK,Germany,HK,Australia and Singapore. These countries bring up freely available research information to investors, as a guide and sophisticated approach to potential or existing investors.

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