International investment offers a number of advantages for well-informed investors. Firstly, it offers portfolio diversification. By investing in international markets, you reduce the risk of concentrating your assets in a single country. This can contribute to greater stability in your portfolio.
In addition, international investment can offer significant growth opportunities. Foreign markets may experience different economic cycles, which means you can benefit from growth in other parts of the world.
What’s more, it can offer protection against the devaluation of your home currency. If your own currency loses value, international investments in foreign currencies can maintain the value of your portfolio.
International investment can also offer tax advantages, with favourable tax regimes in some countries.