Although diversifying away from the UK market can help an investor reduce risk in their portfolio - as well as increase exposure to some exciting growth stories - many investors remain wary of taking the plunge. Chris Salih explores the pros and cons of investing internationally
When it comes to their portfolios, many UK investors prefer to stick firmly to the home-grown. The UK market is diverse, mature and easily understood, so why take the risks of investing elsewhere? Foreign markets can be volatile and lack diversity, while investors expose themselves to currency risk into the bargain. Add in the vagaries of foreign politics and it is easy to see why many UK investors have kept international equities to a minimum in their portfolios. Is there any reason to reconsider that view? The advantages of looking abroad should not be underestimated. Diversifying away...
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