Familiar does not always mean diversified
Description
Familiar does not always mean diversified.
The Australian sharemarket is heavily influenced by banks and resources companies.
Australia has many strong businesses, but investing only locally may limit your exposure to other industries, companies and economies.
International investments can broaden the opportunity set and reduce reliance on the performance of one market.
The question is not whether Australian or international shares are better. It is whether your portfolio has an appropriate balance between the two.
General information only.
#Investing #AustralianShares #GlobalInvesting #Diversification #InvestmentEducation
The information provided in this article is general in nature only and does not constitute personal financial advice.