Four Sound Reasons to Add Global Assets to Your Portfolio

tradingAny investor in the UK is always trying to manage their portfolio in the best way possible. This not only helps to generate better returns but also sees your money work harder for you. While there are a few ways to go about managing your portfolio, adding global assets to it is well worth considering.

What are global assets and what do they involve? In simple terms, a global asset is one that you can invest in that is based outside of your own country. For UK investors, this could be a big company based in China that you buy shares in, dealing in currencies that do not involve the pound, investing in foreign indices, or buying national bonds from other countries.

Using a global asset management firm is wise

Before we look at why it is a sound idea to add global investments to your portfolio, it is worth thinking about the how. Making sure that you invest globally in a way that benefits your whole portfolio and does not expose you to undue risk is vital. The problem for many investors though is that having the in-depth knowledge and expertise to do this in global assets or foreign economies they know nothing about is very hard.

Rather than give up on global asset investments, the best thing to do is use the services of a global asset management firm. Founded in 2010 and run by CEO Shailesh Dash, Al Masah Capital is one of the best around. The firm has a strong team of expert staff who give professional and independent global investment advice. It also has a number of global investment offerings to consider and take advantage of so that you can get these kind of assets easily into your portfolio.

Why add global assets to your portfolio?

Although you can see why using a global asset management firm is a good move, you may still be wondering why investing in global assets is advisable. The below sets out some of the best reasons to think about it:

  • Diversification – it is often said that diversification is the investor’s best friend, and it is one superb benefit of adding global assets to your portfolio. Adding assets from other countries helps to protect your money from one country’s economy crashing and ride out any volatility that markets in one country could be seeing. By spreading your capital throughout the world, you will be exposed to less risk compared to having all your eggs in one basket. Brexit is the perfect example of this – with no one sure how it will affect UK-based investments or share prices, reshaping your portfolio to add global assets will help protect against any negative impacts.
  • More opportunities to make money – another great advantage of investing in global assets is that you simply get more opportunities to make money. This is only common sense – as you will be casting your net further, it is obvious that more investment opportunities will crop up. If you stick to only investing in your own country or businesses based there, then you are limiting the investments you can take on.
  • Access to emerging markets and economies – one of the growing trends within investment is that emerging global markets are starting to offer up the best returns and investment choices. Adding global assets to your portfolio not only gives you more opportunities but also ones that may well perform better to generate healthier returns. Having this kind of access to new markets and national economies that can offer bigger returns is key to the modern investor.
  • Rebalance your portfolio effectively – you may have reached a point where you wish to reshape your portfolio structure. You may, for example, wish to add new asset classes altogether or simply have a different split of ones you currently have in there. Adding global assets can help do this more easily and in a better way. As you will have the whole planet to choose assets from, it can see you find the perfect ones to give your portfolio the new look you desire.

Invest globally like a pro

Although it is never a good idea to blindly follow the crowd, it is always worth seeing what the top-level investors do. Many will add global assets to their portfolio for the reasons shown above and to help them make more money. With global markets and the middle classes that power them really starting to take off around the globe, it is something for every investor to think about.

Join the discussion