Why invest offshore?
Many investors in South Africa are looking for ways to get exposure to offshore markets to diversify their portfolios, get access to global opportunities, and get returns in a different currency.
What to consider when investing offshore
Realistic expectations of the risks and rewards
Typically, the more risk you take, the better your return - but also the higher the risk of loss. Investing offshore is typically associated with better returns over the medium to long term, but also with a higher risk of loss over shorter periods. Setting realistic expectations can help avoid short-term disappointment and panic reactions.
A long-term approach
Offshore investing is typically a long-term commitment because of the higher level of risk associated with it over short-term periods. You need to keep in mind that although investing offshore can offer prospects of higher returns, you need a longer investment term to balance out the additional currency and market risk you accept. Speak to your financial adviser and see if it's the right time for you to invest offshore.
A trusted and competent financial adviser
The professional expertise and strategic network of a financial adviser can be very valuable when it comes offshore investing. They can help you set realistic expectations, assess your risk appetite, reduce risks and costs,and guide you in making healthy investment decisions. Here are some tips on choosing a financial adviser to help you create an offshore investment portfolio that suits your needs.