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Managing your money 8 March 2019

Invest your bonus now for future returns

It may be tempting to spend your bonus on something frivolous, but not doing so can be far more rewarding.

Imagine being able to put it towards buying an international property or taking your family on that overseas trip? There are many investment options available, both locally and abroad.

Why invest globally?

Once a luxury available only to high net-worth investors, investing worldwide has become more affordable and accessible.

It offers wealth-building opportunities that are safeguarded against political and macroeconomic risks, and also help to diversify your investment portfolio.

If you have children who may wish to study abroad one day, international investment can be an attractive option for the long-term. Similarly, if you work or travel abroad often, these may offer great benefits.

Benefits of international investment

International investment strategies give you exposure that capitalises on benefits external to your home country, including different markets, economies and currencies

They can offer better value and growth potential than what is available locally, and the possibility of positive performance that outweighs the risk of investing internationally.

How to invest?

Here are two ways to consider:

  • Indirect

Asset swaps are an option for investors who do not want to move their funds offshore but would like to profit from investing in foreign markets.

  • Direct

Funds are physically moved abroad to an international jurisdiction, enabling you to invest in overseas currencies.  
Another option is to invest in exchange-traded funds, or share portfolios.

Additional options include holding an international bank account, investing in gold or certificates of deposit, online execution only share trading, and overseas property. The investment vehicle you choose will largely depend on your appetite for risk.

Bear in mind that ratio of assets invested in your home country or internationally can only be determined by considering your immediate cash flow needs and your risk profile.

The value of investments may fall as well as rise, and past performance is not a reliable indicator of future results.

Next step

If you’re thinking about investing abroad, take a look at the Savings Accounts or Investment Solutions that we offer.