Boost your returns offshore by seeking growth and value
If you want to diversify your portfolio to include overseas investments, you certainly have a lot of choice.
As with investing in SA, you want to make ample returns.
So how can you pick the best country to invest in?
Read on to find out…
How is economic growth performing?
Several studies have shown that countries with good growth prospects tend to offer investors higher returns.
But to successfully invest offshore
, you have to focus on countries that look likely to grow well into the future.
If a country has already got some superior growth under its belt, there’s a high chance that investments are overvalued as investors have already piled into the country.
How much value is there?
That’s why it’s important to also focus on value, Cris Sholto Heaton in Money Week
You want to invest in countries that are relatively cheap. This gives you the best scope for gains into the future.
The perfect offshore destination for your investments
If you get your choice right in terms of growth and value, there’s scope to make bumper returns going forward if history is anything to go by.
If you end up investing in countries where growth isn’t as good as you thought it would be, as long as you invest in relatively cheap investments, you should still see a decent performance.
The key is not to buy into expensive investments offshore. Chances are you’ll be disappointed.
And don’t forget, when you invest offshore, you take on currency risk. This can have a negative impact on your returns.
So there you have it. Boost your returns offshore by seeking growth and value.