Australia has built connections internationally through international investment and trade. Studies show that the United States and the United Kingdom have been the two of the largest economies Australian businesses invest in, with an investment relationship worth more than A$1.47 trillion with the US and over A$815 billion with the UK.
If you are an investor looking to grow your capital, you need to consider investing in global assets with the guidance of a trusted global listed investment company.
Why Invest Internationally?
Australian investors have seen the increasing popularity of international investment and have witnessed the benefits that it offers. Now that the world is experiencing market volatility due to the pandemic, it’s the perfect time to dive into the world of international investments. Here are some reasons why:
1.Offers More Investment Opportunities
Because of the pandemic, most businesses have shifted to online services. The trend also shows a continuously growing interest and high demand in technology and e-commerce.
If you invest internationally and dive into the international markets, you can gain access to various promising industries around the world you otherwise won’t have access to locally. Imagine gaining access to tech giants like Apple and Google and e-commerce catalysts such as Amazon and eBay.
2.Enhances Your Portfolio
As an investor, building your portfolio is important to grow your capital. The more diverse it is, the more opportunities you can take advantage of. With the support of a global listed investment company, you can maximize profits from various countries and powerful sectors.
When you broaden the scope of your portfolio, you can minimize the impact of market volatility on your total market share. Although there might be a decline in one market, you might still benefit from your investments in other emerging markets. The key here is to understand the market behaviour in the different sectors and diversify strategically.
Expanding your horizons at the global level opens up more opportunities for you, and you can tap into a larger market, thereby gaining access to the world’s sharemarket value. As an investor, international investments will also help you diversify your portfolio to take advantage of the potential growth of other countries.
What to Look for When Investing Internationally?
To reap the benefits of the global market, you must learn the ins and outs of the different sectors across the globe and do ample research about industry trends.
To formulate a proper investment strategy, you need to know the following:
- Company’s Competitive Advantage: This talks about how strong the company is in relation to its industry. Before you invest in a brand, you need to consider the company’s size, products, technological superiority, innovative qualities, and market share. You need to find out certain aspects of the company that makes it stand out in its industry.
- Company’s Economic Position: When searching for stable companies to invest in, there are two types to note, mainly dominating companies and disrupting companies. Dominating companies are those which are at the top of their games. They’re strong and innovative. They don’t show signs of slowing down. Disrupting companies, on the other hand, are those which are pioneers in their industry. They are changemakers and industry-shakers. Both types of companies show stability and a high potential for growth. They are the companies you should invest in.
- Company’s Expected Growth Rate: Growth is an important factor to consider when investing internationally. They can tell whether a company will remain relevant or not if a company is adaptable or stagnant. As an investor, you need to find a company that shows a consistent growth rate throughout the years so you can lessen the risk of losing money.
Utilizing financial media, reading foreign company reports, and tuning in on business programs are ways to acquire the information you need. However, the most efficient tool is to seek guidance and support from experts. They can share substantial insights that will help you determine the right markets to tap into.
What Is the Impact of International Investment?
Seizing investment opportunities has become an essential aspect that greatly contributed to Australia’s economic success throughout the years. With the right tools and the proper market knowledge, you can make the right decisions to reap the benefits of international investment.