Investing offshore may sound complex, but all it really means is that you’re investing in a country other than where you live. Because our economy is so tiny, there are literally thousands of investment opportunities in other countries and currencies, providing access to high-growth sectors not available locally. These include technology, like Facebook or Alphabet (which owns Google); e-commerce, like Amazon; and biotechnology, such as Gilead.
SPREAD YOUR RISK
A golden rule for successful investing is diversification – not putting all your eggs in one basket. It’s like eating a healthy diet: just as different foodstuffs provide your body with different nutrients to stay healthy, spreading your money across various types of investments (called asset classes) creates a healthier portfolio by reducing your risk. This is because each asset class (bonds, property, shares and cash) performs differently each year. In fact, you may already be investing offshore without realising it.
