Advantages and disadvantages of offshore investing, which asset class suits you best?

A Liberty Group SA investment manager unpacks the various offshore investment options available.

Investing money overseas is a great way to build wealth and expand an investment portfolio, but diving in headfirst without significant research and preparation can hamper an investment’s potential growth.

Investing in offshore investments offers consumers great opportunities to diversify their investments and potentially grow their wealth, but it can be complex. To inquire about the best way to approach offshore investing, John Maytham spoke with Nishaan Desai, Head of Liberty’s Investment Portfolio Solutions Division, to find out the pros and cons of offshore investing.

Listen to the full conversation below…

Liberty offers various options as a first step towards building an investment portfolio that works in the consumer’s best interest. Nishaan mentions that there are “growth asset” classes that generate decent returns over the long term, but can be bumpy in the short term due to market volatility and that there are defensive assets” which offer the consumer more protection, these protect them from losing their money with the only downside being that the consumer will not see the same amount of growth as in the “growth asset” classes.

Portfolio construction is about combining these two elements in a way that makes sense for your investment. so you have to decide what your goal is.

Nishaan Desai, Director of Investment Portfolio Solutions Division – Liberty Group South Africa

It is possible to mix the two classes to take advantage of the advantages of the classes. Yet, since most consumers aren’t full-time investors, they should choose model portfolios managed by professional investment managers whose full-time job is to know which way the wind is blowing.

The model portfolio is a good way to leave those difficult decisions to the portfolio managers. You specify your goals, you choose the model you want, and then within that model the investment manager will combine growth and defensive assets.

Nishaan Desai, Director of Investment Portfolio Solutions Division – Liberty Group South Africa

To grow your offshore investment portfolio today, Liberty’s offshore investment plan offers portfolios that give clients the ability to invest in international markets, through a flat-rate investment in US dollars. This gives investors a good option to use their annual offshore allowance while enjoying tax benefits.

Find out more on the Liberty Offshore Investment website.


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