top of page

Why Geographical Diversification Can De-Risk Your Portfolio For Good

As investors, we want to grow and protect our money by investing in geographies we are familiar with. We want to limit our risk and keep our money right before our eyes by investing in our domestic land.

But then why are seasoned investors today approaching foreign developed markets. Numerous global socio-political changes have occurred in the past 2-3 years. Despite this, experienced investors are not shying away from going across the borders. The reason? They know that geographical diversification has many benefits, and often, its pros surpass the cons.

Geographical diversification is the practice of spreading your investment across different geographical regions. Such diversification ensures reduced risks and higher returns. Both individuals and companies are adopting it as it benefits any portfolio in more than one way.

Let’s take an in-depth look at how a geographically diversified investment strategy can de-risk your portfolio.

Reduces the risk of a single economy

Geographical diversification protects against losses accruing from a domestically concentrated portfolio. Any major changes in the country will significantly impact the portfolio. This strategy helps to distribute your wealth as well as the risk across countries.

Low dependence on a single economy or fewer geographic locations helps build a shield against market volatility. It reduces risks and ensures attractive returns when the market conditions favor one country over another.

You can check out several investment avenues such as our prebuilt thematic portfolios, Exchange-traded funds (ETFs), and mutual funds that have made investing globally easier than ever before.

Access to high returns fractional shares

A fractional share is a part of the full share of equity or an ETF. Fractional shares allow investors to park their money in high-priced stocks and earn high returns even when they invest less than a share's full price. It also helps the investors explore companies that are essential consumer staples. These companies usually have high-priced stocks, such as Amazon, Google & Microsoft.

If you are interested in exploring fractional shares and want to explore the most lucrative options, then explore ShiftAltCap’s #AllEssential recommendations. Our experts analyze and monitor the market to suggest companies with high resistance against market headwinds.

Explore different industries and innovations

Every country has its highlight industries that stand out against others. Such industries are determined by the country’s economic and development plans. The innovations are fuelled in such industries and new ideas are constantly being conceptualized.

Innovation is a lucrative opportunity for investments. It propels the existing efforts. Innovation also makes room for more employment opportunities, and wealth generation avenues. Since not all innovation is concentrated in a single country, geographical diversification lets investors explore innovative industries in other countries.

At ShiftAltCap, our #AllInTech thesis helps you to explore such profitable investment opportunities focused on innovation. Our experts actively track and pick out the best investment options according to your risk appetite.

Experience the safety of developed economies

Developing economies are the future of global development. These economies hold a lot of growth potential and have proactive growth strategies. The investment graph of developing economies looks steep and may attract many investors. While returns on investments do look promising, they are also highly volatile.

It is, therefore, recommended to find refuge in developed economies for a significant portion of your investment. Developed economies have a stronger foundation for their plans with infrastructure and technology in place. They also have greater political power and influential relationships with other countries.

Hence, a domestic or global threat to the country’s economy can be delayed or handled with care. Take, for example, ShiftAltCap’s prebuilt global stack that comes with handpicked funds and gives 30% returns YoY. Investments in developed economies provide an adequate safety net to the investments that pour into developed nations.

Blue ocean markets

Blue ocean strategy in marketing means exploring markets that competitors do not yet crowd. This strategy can help investors, too, to explore the markets where it is not crowded with buyers and sellers. An early entry into a new geography or new industry will help investors to reduce risks and deal with lesser fluctuations that may result from excessive buying or selling of shares.

Investors can use the blue ocean strategy to venture into countries that have recently opened up doors for foreign investors. This could also include countries exploring new opportunities in upcoming industries. Such countries may also provide investment benefits to foreign investors such as tax exemption, higher safety, etc.

If you find it overwhelming to trust blue ocean markets, then let our investment experts take the lead. At ShiftAltCap, we have investment experts with decades of experience who will personally assist you in exploring lucrative investment opportunities overseas while safeguarding your funds with active monitoring.

Geographical diversification may not be every investor’s expertise. If you are not familiar with global markets, investing in a foreign land may appear overwhelming. The best way to ensure that your portfolio reaps the benefits of diversification without making any losses is to have an expert eye. ShiftAltCap brings you this expertise with continuous monitoring of several overseas markets.

Get in touch with us today and start your global investment journey today!



34 views0 comments


bottom of page