When Covid-19 raged through the world, many of us had to accustom ourselves to the notion of working from home. Alongside this, many of us started to reassess some of our investment portfolios,  exploring different investment instruments and opportunities in the overseas markets.

Investing in the overseas markets that you might not have enough knowledge on, might seem daunting. However, with the right tools and knowledge, multi-market portfolios can prove to be the most effective way of portfolio diversification, allowing one to not putting "all your eggs in one basket".

Quick things to keep in mind when expanding your investment portfolio across the markets

One of the main reasons seasoned investors diversify their portfolios is by hedging their funds differently, spreading their risks. Should a given country's market take a tumble due to an ailing economy or political strife, not all of one's investments would be at risk. Investors also look to diversify their portfolio to capitalise on having a slice of the pie in an up-and-coming market that shows great promise and growth in the future.

There are also many ways of investing your hard-earned money. Whether you choose to invest in stocks, futures, exchange-traded funds (ETFs), real estate investment trust funds (REITs), the possibilities are endless.


Get the latest Singapore corporate news stories for FREE

SEE: Addressing the need for data and speed – Tiger Brokers forms strategic partnerships and launches 'Fund Mall', a one-stop-shop for investing in global mutual funds


Understand what soup you are getting into

It is important to understand the pros and cons of different international exchanges to meet your risk appetite. For example, compared to the Singapore Exchange, the New York Stock Exchange (NYSE) is 30 times larger, while the Hong Kong Exchange (HKEX) is 5 times larger. This might mean that while these markets have unmatched liquidity and flexibility for portfolios, they are far more volatile to market changes and prone to clashes.

Another draw for investors to diversify their portfolios internationally is that they would be able to invest in companies and brands they interact with daily —whether this means Apple, Amazon or even Alibaba. One can also find a vast amount of available data out there to make well-informed decisions. 

Ways to diversify your portfolio

Beyond language barriers and currency conversion, investing overseas can be easier than you can imagine. One of the easiest and most common ways to invest in a foreign market is to purchase ETFs or mutual funds that hold a basket of international stocks and bonds. These options are one way to offer investors a highly diversified foreign portfolio to get started with.

Mutual funds are actively managed by professional investors – which makes them more pricey – while ETFs are passively managed with holdings on a pre-existing index – making them more affordable. The rule of thumb is that higher risk funds will have a higher rate of returns, but this will be entirely dependent on your risk appetite. Similarly, established companies that are on international markets make for safer bets, while younger and more dynamic companies may provide undervalued opportunities that come with higher risk.

At Tiger Brokers, investors can now join the trading platform as an Ace Trader where investors can get to enjoy 30% commission and free stocks. Investors are also able to stand a chance to win stock vouchers and birthday gifts on the different tiers of being a Tiger Brokers trader.

tb - THE EDGE SINGAPORE

The right tools in making your investment journey into the overseas markets easier

When starting any journey, it is essential to be equipped with the best tools to help you make a sound decision when it comes to investing.

Content is king. Download your favourite news tracker to keep abreast of international news and political or economic situations that could impact markets. This will aid in your decision-making efforts when looking out on where to invest and what investment instruments to invest in. Besides, invest the time to learn about different companies that you are interested in investing. Lastly, learn how to fully utilise your mobile brokerages’ features, including charts, markers and indices to help you easily compare and track different companies – much like the feature available on Tiger Brokers.

The launch of Tiger Brokers’ Enterprise Welfare for Employees also paid homage to corporate employees. They can enjoy exclusive benefits such as 6 months commission-free trades and a post deposit trade voucher up to $200 when they open a Tiger Brokers account.

tb - THE EDGE SINGAPORE

Download the Tiger Trade app from the Apple App Store or Google Play Store, or access it from your desktop. For more information on Tiger Brokers, please visit here.

 

======

 

This article has not been reviewed by the Monetary Authority of Singapore.

Any views shared with Prospective Clients (“Prospects”) are suggestive in nature and on a sample basis only.  The article may also be predicated on assumptions that are made by Tiger Brokers (Singapore) Pte Ltd about the Prospects’ investment objectives and risk profile. Our suggestive and sample views extended to Prospects are not to be considered as recommendations made by the Company. Suggestions provided are also based on information that may be shared by the Prospects, the accuracy and comprehensiveness of which Tiger Brokers is not in a position to verify.

Tiger Brokers (Singapore) Pte Ltd (herein “Tiger Brokers”) may, to the extent permitted by law, participate or invest in other transactions with the issuer of the products referred to herein, perform services or solicit business from such issuers, and/or have a position or effect transactions in the securities or options thereof. The information herein is for recipient’s information only and not an offer to sell or a solicitation to buy. Any date or price information is indicative only and may be changed without prior notice. All opinions expressed and facts referred to herein are subject to change without notice. The information herein was obtained and derived from sources that we believe are reliable, but while reasonable care has been taken to ensure that stated facts are accurate and opinions are fair and reasonable, Tiger Brokers does not represent that it is accurate or complete and it should not be relied upon as such. The information expressed herein is current and does not constitute an offer, recommendation or solicitation, nor does it constitute any prediction of likely future stock performance. Investment involves risk. The price of investment instruments can and do fluctuate, and any individual instrument may experience upward or downward movements, and under certain circumstances may even become valueless. Past performance is not a guarantee of future results. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person or affiliated companies. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances. Tiger Brokers assumes no fiduciary responsibility or liability for any consequences financial or otherwise arising from trading in securities if opinions and information in this document may be relied upon.