Things to note when expanding investment portfolio internationally

Tiger Brokers Singapore reveals ways on how to invest hard-earned money.

If working from home has made you experiment more with your investment portfolio, it may be time to think about expanding your options to include overseas markets as well. Whilst investing in overseas markets that you may have only heard of and may be unfamiliar with might seem daunting, there are some relatively easy strategies to keep in mind to successfully grow your investments. With the right tools and knowledge, multi-market portfolios can prove to be very beneficial for your investing needs and ultimately, where you want to be and see your wealth grow.

Quick things to keep in mind when starting your overseas investment journey

One of the main reasons seasoned investors diversify their portfolios with overseas investments is to spread their risk. This means that should a given country’s market take a tumble due to an ailing economy or political strife, not all their investments would suffer as a result. Many investors also diversify their portfolios to capitalise on having a slice of the pie in an up-and-coming market that shows great promise and growth in the future.

This doesn’t mean that you should rush to drop your current investments to buy into foreign markets. Financial experts often recommend that investors allocate 5% to 10% of their current investment funds to dabble in overseas markets. This allows one to understand the workings, nuances and intricacies of what it means to invest in an international market.

There are also many different ways of investing your hard-earned money. Whether you choose to invest in stocks, futures, exchange-traded funds (ETFs) or even FX, the possibilities are almost endless. First and foremost, it is important to understand the pros and cons of different international exchanges so that you are able to make informed decisions, or decisions that you are comfortable with. For example, The New York Stock Exchange (NYSE) is 30 times larger than that of Singapore’s, whilst the Hong Kong Exchange (HKEX) is 5 times larger than Singapore’s. This might mean that whilst these markets have unmatched liquidity and flexibility for portfolio options, they are also volatile and can be prone to crashes.

Another draw for investors to diversify their portfolios internationally is that they would be able to invest in companies and brands they interact with on an everyday basis — whether this means Apple, Amazon or even Alibaba. Such big marquee names also mean that there is a wealth of information out there to make well-informed decisions.

An exciting way to diversify your portfolio

Investing overseas is easier than you think, even though many think that one can be marred by language barriers or currency conversions. One of the easiest and most common ways to invest in a foreign market is through purchasing ETFs or mutual funds that hold a basket of international stocks and bonds. This also provides investors with a quick and highly diversified foreign portfolio to get started with.

Ultimately, what funds best work for you also depend on your objectives. Generally, mutual funds are actively managed by professional investors — making them more expensive — whilst ETFs are passively managed with holdings on a pre-existing index — making them more affordable. The rule of thumb is that higher-risk funds have the potential for greater returns, but also often comes with less stability. Similarly, established companies that are on international markets make for relatively safer bets, whilst younger or more dynamic companies may provide undervalued opportunities that come with higher risk.

How the right tools can make your overseas investment journey easier

When starting any journey, it’s always wise to be equipped with the best tools to make your journey easier and more convenient.

Download your favourite news trackers to keep abreast of international news and political or economic situations that could potentially affect overseas markets. This also lends itself to your decision-making processes when you are looking out on where to invest and what to invest in. Take the time to learn about the different companies you are interested in investing in, whether it’s through research or convenient widgets like Google Alerts. Lastly, learn to fully utilise your mobile brokerages’ features, including charts, markers and indices so that you are able to easily compare and track different companies, and even look up on historical data — much like the features available on Tiger Brokers.

At the end of the day, it is important to have a healthy risk appetite but that also doesn’t mean that you cannot make informed decisions. A good place to start are in markets you have an affinity towards or companies that are particularly enticing to you and your values. Diversifying your portfolio is actually good to minimise risk exposure, and having the right tools is just the first step in this life-long journey. 

At Tiger Brokers Singapore, take advantage of our sophisticated tools to make your money work harder for you. With everything within the reach of your palm, we aim to make your investment journey easy, whether you’re new or a seasoned investor. It is also a one-stop trading platform for investors to invest in different multi asset classes globally. Tiger Brokers invites you to collect its Welcome Gift and Referral Promotions, which include $200, commission-free trading, and Free Level 2 Data for U.S. stocks for 30 days to get you started on the right foot.

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About Tiger Brokers (Singapore) Pte Ltd.

Tiger Brokers Singapore Pte Ltd (Tiger Brokers Singapore) is a brokerage firm operating with a Capital Markets Services (CMS) Licence from the Monetary Authority of Singapore (MAS). Its trading platform, Tiger Trade, offers complimentary real-time stock quotes, dedicated multilingual customer service during trading hours and 24/7 finance news updates. The company launched the mobile version of Tiger Trade in February 2020 — accessible on Google Play Store and the Apple App Store — offering mobile-savvy generation of retail investors similar trading opportunities as their online users, such as Equities, Exchange-Traded Funds (ETFs), Futures, Stock Options, Warrants, and Callable Bull/Bear Contract (CBBC) on their mobile phones. Both online and mobile app allow users to invest across multiple asset classes traded on the Singapore, U.S., Hong Kong and Australia stock markets such as the New York Stock Exchange (NYSE), NASDAQ, Shanghai/Shenzhen-Hong Kong Stock Connect, the Hong Kong Stock Exchange (HKEX), the Singapore Stock Exchange (SGX) and Australian Securities Exchange (ASX).

Tiger Brokers Singapore is the Singapore entity of UP Fintech Holding Limited, known as “Tiger Brokers” in Asia, a leading online brokerage firm focusing on global investors. Founded in 2014, Tiger Brokers became #1 in the U.S. equity trading by volume among trading platforms catered to Global Chinese investors in less than two years. Tiger Brokers was awarded "2017 Fintech 250" by CB Insights and shortlisted for "China Leading Fintech 50" for two years in a row by KPMG China. The company was listed on NASDAQ under “TIGR” in 2019 and has offices in China, United States, Australia, New Zealand and Singapore. Tiger Brokers has over 833,900 customers worldwide currently, with a total trading volume of US$46.8 billion in Q2 2020. The company is backed by well-known investors such as Xiaomi, as well as investment guru Jim Rogers. For more information, please visit https://www.tigerbrokers.com.sg.