Learn How To Invest In Asian Markets

These days, finding a place to invest your money is highly difficult. Traditional certificates of deposits and savings accounts yield mere pennies on the dollar, and investing in American and European economies appear to be stagnant or even unstable. Perhaps a better option would be to invest in emerging markets, which have grown significantly in the last few decades.

One statistic that can showcase which countries are worthy of investing is the GDP, which is the gross domestic product of a country. The poor European and American economies have sharply affected the GDP of many nations, including our own which is certainly on the mend, but still only at about 3 percent growth. Other nations, such as Greece, have suffered horrendous declines higher than a 7 percent loss in GDP. There are other regions of the world, however, that have posted the opposite GDP statistics.

China, for example, has posted at least a 7 percent gain in GDP for more than six years, and during some years, this growth was higher than 10 percent. These are excellent statistics for investors looking for a place to invest their money and receive a high rate of return on their money.

For conservative investors looking to bulk up a retirement portfolio, it is generally best to look at long-term sources of investment. There are certainly many Asian funds that fit the bill. Some of these funds are quite broad including many Asia Pacific nations such as China, Malaysia, Indonesia, Philippines, Singapore, Thailand, Vietnam and even India. If you prefer, you can invest in China funds that are concentrated only in mainland China or perhaps the mainland and also Hong Kong.

Before you invest in a China fund or a broader Asia fund, do some research and look at the types of companies that are part of the fund. Usually a fund manager will showcase the top ten holdings and also show the main industry sectors within the fund. Generally, these types of funds will invest heavily in energy, industrials and information technology, but there probably also will be sectors such as real estate, utilities and telecommunication services. In a fund that includes many Asian nations, also take a look at which nations are included and at the geographic weight given to each country.

Another option to consider is investing in a fund that invests in Chinese banking or currency. These bond funds are often highly diversified among a variety of banks as well as including the Renminbi, which is the official currency of China. While this typically has a lower rate of return than investments in a China fund or Asia fund, a currency fund does tend to offer consistent long-term growth and offers another way to invest in foreign markets.

Cleveland Jernigan enjoys blogging about investments. For additional information about Asia Pacific investments or to know further about Asian dividend funds or alternatives to an Asian Pacific bond fund, check out these fund sites.

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