Foreign and Emerging Market Mutual Funds to Broaden your base.

Up front I will tell you I am not the best expert on Foreign and Emerging Market Mutual Funds.  Simply because they do not fit into my personal portfolio due to my age and retirement.  Younger investors that are gainfully employed and investing in the Stock Market and the point of building your base.  These types of Mutual Funds need to be there.  For retired or near retirement investors I must discourage these funds due to volatility. 

What is the difference between Foreign and Emerging Market Mutual Funds?

Well the simple answer to this question is Foreign Market Mutual Funds invest in various foreign market stocks from around the globe that make up the mutual fund.  While Emerging Market Mutual Funds are made up from companies from a specific country.  Like all Mexico stocks, all Japan stocks, all Middle East stocks etc..

There are many good Foreign and Emerging Market Mutual Funds out there.  Literally thousand.  But as that is not a position I am in I cannot advise on the good ones.  That will need to consult with your personal financial advisor.  I will say I use to have a Principle fund or these types and I found them to be total dogs.  I waited until I got back to even after many years of waiting and sold them and reinvested the money into a profitable Principle fund I liked and that is now making me money and has my money working for me.  You can make some big bucks in Foreign and Emerging Markets but you must have lots of patience and wait for the big payday.  Retired or near retirement cannot afford to wait for that kind of big payday due to shorter lifespan ahead of them.  Thus why I do not recommend them for those in this situation.  Retired or near retired individuals need to have their focus totally elsewhere than a younger investor looking to grow their portfolio.  I will talk about the older investor later as we progress in my Blog.

Gus S.


Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.