Global investment opportunities are widely available and can be found on the stock market, in mutual funds and through direct contact with local businesses. The risks of global investments differ slightly from domestic investments and so additional work is required to select the best investments. There are three ways to find the best global investments: international investment firm services, diversified portfolio, and local business contacts.
Large, international investment firms offer a wide range of global investment opportunities. The opportunity for growth and a greater return on investment is readily available in developing nations. These investment firms have the resources to investigate companies and make recommendations. It is important to check three items when relying on these firms: due diligence process, operation location, and history.
With a global investment, it is critical to understand the level of detail involved in the investment firms’ investigation and research. Your investment decisions are based on their reports, so take the time to learn what information they have and how they obtain it. Find out if the firm has an office in that country or region of the world. The more invested they are in that country, the better quality information they will have. Determine how long they have been making investments in that country or region of the world.
A diversified portfolio includes a mix of financial instruments and investment in a range of industries. Spread out your global investments across two or three unrelated industries. Avoid countries with political turmoil or an active resistance movement to the current government. The opportunities and rate of return available may be higher, but so is the risk.
Local business contacts in the countries that you want to invest in can provide sound business opportunities and may have more intimate knowledge of the economic situation. It is important to remember that government rules, laws, and procedures surrounding foreign investment vary widely. If you are planning to invest in a business directly, take the time to personally visit the firm and make contact with the local government officials.
Although this option for global investing provides a high rate of return, it is now incumbent on you to complete the due diligence and legal review before providing any money. The most successful global investments of this type occur when the investor has their own representative on site to keep the investor informed of business activity and local economic factors. This type of business transaction has a very high risk of fraud, so it should only be considered by skilled professionals.
