Q : I have heard about local and global funds. Who decided on the portions of asset allocation of a fund? What are the additioanl risks involved in investing in global funds where i have no acces to market information.

A : The difference between Local and Global Funds.

The difference in such funds mainly in the geographies/countries it invest in, the classification on fund types i.e. whatever it is skewed towards growth, income or balanced-type fund and type of investments. The investments allocation of these funds will then be guided by these criteria, the fund manager’s invesment process and philosophy as well as the market enviroment.

Benefits of going global

Global funds benefit investors by providing greater diversification, risk spread, access to securities, fund types or asset classes not available locally as well as foreign investment expertise. Due to generally lower correlation between geographies a well spread portfolio may potentially afford lower performance volatility.

Risk involved in investing globally

Whatever the fund type, each comes with its own set of risk and benefits. Do not be mislead by consensus or herd mentally. Going ofshore means taking on a host of diffrent country risk, foreign managent risk, currency risk, interest rate risk, performance risk and many more ! Do your home work, read and understand the prospectus and fine print. Consult a professional if you are i doubt. Most importantly, cover all bases and ensure it fits your investment plan and you are confortable with your choice.

Article source/about:

The sun 05 Aug 2008/ Hwang DBS Investment Management Berhad is one Malaysia’s leading management companies for more info log on to www.hdbsim.com.my.

About Me :

Im the Unit Trust Consultants for CIMB Wealth Advisors Berhad who can sell the Hwang DBS Unit Trust Funds as 3rd party funds. Interested just contact me at 019-3649613 or email murtaza@cimb-wealthadvisors.info