Diversification

Step 4 of 8

Diversification & Global Equity Markets

Global Diversification

As discussed, global diversification means investing in markets or investment vehicles located in various parts of the world. In doing this, an investor can take advantage of investment opportunities that might not be available in their own local market. It is also a way of controlling risk as it is highly unlikely that a broad range of investments from different parts of the world will all behave in the same way at the same time, i.e. rise together or fall together.

On a scale of 1-5 (1 being low risk and 5 being high risk)…. TBC

The map below shows the world markets. These include the FTSE100, the Dow Jones, the Emerging Markets, Developed Europe and Developed Asia (ex Japan).