19–4 International investment diversification:
The economies of the world tend to rise and fall in cycles that offset each other. International stocks can provide possible diversification for a portfolio heavy on U.S. equities. Because research on foreign companies is usually difficult for individual investors to track on their own, a foreign equity mutual fund offers the investor the expertise of a global fund manager.
Foreign-stock funds provide exposure to overseas markets at varying levels of risk. Economic and currency risk can swing in a positive or negative direction.
Hence, diversification is the key to managing risk. Funds that invest overseas fall into four basic categories: global, international, emerging-market, and country-specific. The wider the reach of the fund, the less risky it is likely to be.
a. Go to http://finance.yahoo.com. Click on the “Investing” tab and then click on “Mutual Funds.” On the left, under “Education” click on “Types of Mutual Funds.” In the middle of the page, click on “Foreign Stock Funds Explained.”
b. Briefly explain the differences between the following funds:
(1) Global fund
(2) International fund
(3) Emerging-market fund
(4) Country-specific fund
This question was answered on: May 23, 2022
This attachment is locked
Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)
May 23, 2022EXPERT
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions: