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How to invest offshore using unit trusts

by , 10 November 2015

Unit trusts are a great investment vehicle if you're looking to build a diversified portfolio of shares.

As part of your diversification goals, you may also want to include offshore exposure.

So how can you achieve this with unit trusts?

Let's take a closer look…


How to gain offshore exposure with South African unit trusts

 
You could buy into offshore unit trusts to add some international exposure to your portfolio. But for many investors, this isn’t an option. 
 
They don’t want the hassle of opening an offshore account and having to take their money out of South Africa.
 
To still achieve your goals of investing offshore, you can look to invest in South African unit trusts which invest overseas for you.
 
And this means you don’t have to use your offshore allowance.
 
There are many different ones on offer, concentrating on different international markets.
 

How these unit trusts fit into your portfolio

 
By combining international unit trusts with domestic unit trusts, you lower your overall investment risk. This is because international funds should behave differently from the domestic funds you invest in.
 
You don’t have to hold a multitude of different international unit trusts. Pick a few to add to your portfolio based on their track records and expense ratios.
 
Of course, you could also consider investing in exchange traded funds (ETFs) as an alternative to unit trusts. There are a number of ETFs that mirror the performance of international markets, including the UK, the US, Europe and Japan.
 
So there you have it. How to invest offshore using unit trusts.
 
*********** Hot off the press ************
 
There’s an even easier way to start investing
 
Have you been sitting on the side lines while your friends and family make thousands of rand by investing in the stock market? 
 
 
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How to invest offshore using unit trusts
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