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On top of the above, there is also currency risk involved. Investors should be sensitive to xchange rate fluctuations. Foreign currency swings can affect the performance of the fund managers/funds if not properly managed. The returns of your investment could easily be translated to a loss because of exchange diferrences.

A local investor without access to a host of information will be limited in their decision-making. It is preferable if you can get professional help. If you are planning to invest in a foreign country, then it is best to look for a mutual fund that invests specifically in that country.

You should study in detail the fees or marketing charges which can siphon off a significant portion of your investment. An investment advisor will be the right person to guide you.

Some of you who have experience in investing in overseas markets for diversification may have found that the desired returns could not be achieved. How can that happen?

Short-sighted local investors tend to evaluate the performance of their investments over a few months rather than over a few years basis.

If you are investing abroad, you should prepare yourself for greater volatility and you should be doing it for long-term prospects. Do not be overly conceived about short-term volatility.

If you are investing in any of the foreign trust fund, you should practice patience to see your capital to grow over a longer term period let say 3-5 years. Surely, you cannot quickly dismiss your investment as a bad apple just after 6 months (assuming you have done enough homework before investing). More importantly, you must be sensitive to the rapid change of the global environment.

You would not be convinced by a fund manager who performed remarkably well over a very short-time period. He could just be an absolute loser at the end of the day.

When you invest in the foreign markets in particular, you should not adopt the "in-and-out" strategy to make quick profit. Resist any temptation for short-term gains.

International investing is beneficial for long-term investment safety - the conventional wisdom of today's market. International investing could be profitable, but often it is not the investment tbat does not produce returns, but rather investors who are too hungry for results. They slam the investment after failing to get quick results. You have to be a long-term investor when investing overseas.

Lastly, if you are investing abroad wbich is more complicated than the local stockmarket, make sure you are able to face a higher level of risk. To conclude, be a long-term investor when investing overseas.

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Reproduced with permission from Normandy Services Sdn Bhd, Tel:603-4695560 Fax:603-2945561