Investors have had a wild ride on the markets over the past 12 to 18 months. With a brief reprieve and indices rising after the worst of the global pandemic abated, markets globally have again taken a hit in 2022.
“The increasing ability to invest offshore is a long-term opportunity to diversify, access opportunities on the world stage and create more financial independence from the South African economy,” he says. Still, is offshore investing accessible to the man on the street? Is it not cumbersome and difficult, if you choose to invest directly instead of through collective investment vehicles such as dollar-denominated unit trusts or exchange-traded funds on the JSE?
Whether offshore investments are the right decision for you, specifically, is a question best answered in consultation with your financial advisor, who should know your financial goals and objectives as well as the state of your current portfolio.Diversification Talking about risk, how does an investor balance the risk of a South African recession against a looming global one when making these decisions?
“By restricting themselves to local investments, investors are losing the opportunity to invest in some of the largest, most successful and fastest-growing businesses and markets in the world.”Increasingly, investors are planning for a world where some of their responsibilities are in other countries. Minnaar says this ‘asset-liability matching’ has emerged over the past couple of years.
OldMutualSA I invested R300,000 in a Global Equity Feeder fund. Sitting at R271,000 a year later. Will I make a good return after 7 years?