Looking abroad for unexpected investment opportunities

We all know that investments have to be managed for both risk and returns. The deal that promises to double your money in three years comes with a very real risk of losing your investment. Conversely, Gilts give your investment complete security, but once you factor in inflation, you're only getting a nominal return. The solution to maximising returns while keeping risk at acceptable levels lies in carrying a diversified portfolio.

You're thinking that means spreading your investments across, say, Gilts, stocks, property and corporate bonds. Yes, you should spread your investments across different instruments to get higher returns, but chances are, they are all in the same country and you're content with a 6-7% annualised return.

Now, what if part of your investment is in a country where the economy is growing at 6-8% and for a similar risk threshold, your investment there yields an 8-10% return, thus allowing your overall portfolio to go beyond the earlier 6-7%?

Diversifying your investments across different instruments and destinations allows you to maximise your returns while maintaining an acceptable risk threshold. So what are some investment destinations that merit further study? Read More