There are many countries in the world that are experiencing immense growth that even outranks the United States and can provide great opportunities for those who are looking for international investing prospects. China is now 2nd in terms of market capitalization and is closely followed by the likes of Britain, France, Japan, India, Brazil and Russia. The tremendous growth in the economies of these countries over the last ten years is shown in the stock market capitalization of these countries offering incredible investing opportunities.
The economic growth in countries such as Russia, Brazil, India and China has far exceeded the growth of other developed countries. Between the years 2004 – 2008, the real GDP averaged 3.5% in Brazil, 5% in Russia, 8.9% and a whopping 10.8% in India and China respectively compared to the economic growth of the United States which just been a mere 1.8% in the same time period. Even though international investing in these emerging markets may carry far more risks than investing in the US, the potential return that one can get out of these makes the prospect of international investing extremely appealing.
Since Japan, South Vietnam and Korea embraced capitalization twenty years ago, it has spread like a wild fire with China joining in later on. Moving millions into urban cities in a few days was practically impossible but China has proved how this can be done as it continues to attract millions every year into these so-called capitalistic urban enclaves which has actually made China what it is today.
One of the biggest plus points of international investing is that it lets you purchase shares in some of the world’s biggest and fastest growing organizations and these investments reap greater rewards with the span of time if the investor is willing to shoulder the risks that are part and parcel of going international.
Investing can be done in several ways. One of the ways of international investing is through international mutual funds which include several blue chip companies. You can also look towards indexed mutual funds that replicate the returns that are achieved through a market index like the MSCIEAFE international index of the S&P 500 in the United States. There are also exchange trade funds that offer a pretty good substitute to mutual funds and trade on the stock exchange just like any other conventional stock but they represent not one but a complete basket of stocks in different companies.