Asia investment fund

Investment funds located on Asian markets

Asia is the most fashionable investment direction for investment funds. Why is there such a drive to invest in Asian markets? Are the investment funds located on the market really so attractive?

What risks do we have to be prepared for? When and for whom can this form of investment be attractive? I will try to answer these and other questions below.

Looking at the results achieved last year by investment funds investing in foreign markets, it is easy to notice that many of them had no reason to be happy.

All due to exchange rate differences.

If we are interested in Asian markets, we have two possibilities. We can take advantage of the offer of domestic investment companies that have funds investing in foreign markets or buy units of global giants such as Franklin Templeton or Merrill Lynch. They offer a much larger choice of funds and their participation units can be purchased from banks and financial advisory firms.

Fashion for Asia

Recently, there has been a real fashion for Asian funds. How much in this marketing approach and how many real benefits? Investors who decide to invest in investment funds located in Asia will be convinced of this fact.

China's very rapid economic growth seems to be the main incentive to invest in these markets. 10-11% of the GDP achieved by the Chinese economy every year must make an impression.

What to know when deciding to invest in Asian markets:

Higher commissions

Unlike many national funds, whose participation units can be bought online without payment of handling fees for Franklin Templeton global funds, commissions are as high as 5%.

Higher investment limits

Franklin Templeton and Merrill Lynch are world giants on the investment fund market. However, they impose the highest requirements on minimum investment amounts. Franklin Templeton  has a minimum levy of EUR 2 500 and EUR 5 5000 respectively.

Smaller amounts of investments are expected by Raiffeisen and Fortis. The first minimum is 1000 EUR, the second 1000 dollars or 1000 EUR. The smallest requirements are set by Legg Mason and Robeco, which allows you to invest in emerging markets for 500 EUR.

Diversification

This is always used when sharing investment risk. This is no different for investments in Asian markets. Taking into account risk factors, such as currency movements, investments in funds on Asian markets should not represent more than 20-30% of our portfolio. Looking at investments in the domestic market for investment funds, which have yielded much higher profits in recent years than in Asia, the latter should be seen as a complement to investment forms.

The Asian market, apart from huge economic growth, is also threatening. Such dynamic growth may slow down sooner or later, if not collapse.

It is known how this would affect stock exchanges in that region. It is difficult to predict the reaction of global giants among investment funds. A sudden sale of stocks on the Chinese stock exchange would have a hiccupy effect on other stock exchanges, and the investment funds investing there would count on their losses.

It is not known from now on that the Chinese economic boom is both a source of delight and anxiety.
Sensitive measures are even being taken to reduce GDP growth, but at the moment they are not enough.

The Polish stock exchange market, although marginal in size, has its advantages. It is easy to follow. It's right next door. It is generally known what influences the economic situation on the stock exchange. Good economic data, high profits of listed companies, inflow of assets to investment companies. In short, it is easier to control your investments. The purchase or sale of units of domestic investment funds is not a major problem.


In conclusion, let us not be crazy and let us not give in to the fashion alone to invest in Asia. Advertising or financial advisors are meant to attract clients, but they will not guarantee us profits.