Tuesday, May 21, 2013

investing in an asian fund

Over the course of several years and having traveled to China, Vietnam, Malaysia, Thailand, Singapore and Indonesia, I think I'm now comfortable at investing in a mutual fund or ETF with a regional focus on this part of the world. The cities of these countries are buzzing with activity and you can just feel the momentum going forward. Many have written about the Asian century and the impressive GDP growth in this region, including the Philippines. However, as an investor, I seek to fully understand what I'm investing in and it is only by seeing for yourself what is happening on the ground and talking to its people would you get an understanding of its economic growth. I will not invest in one country's stock market index because my knowledge of one specific country is sorely deficient. Instead, I would want to put money in an asian equity fund with exposure to the all of the countries mentioned above. I was looking forward for the PSE to join the ASEAN trading link but come to think of it, I really would not be comfortable in investing in a particular Thai or Singaporean company since I do not know them that well. A good compromise would thus be to invest in a fund that invests broadly in  the equities of these exciting countries. The timing may be a bit off since stock prices are expensive but this is irrelevant since I strive for an equal asset allocation to stocks, bonds, gold, cash and real estate. Time to research and read fund prospectuses. Happy investing!

3 comments:

  1. I don't even have a dollar account. How can you be a simple investor and be investing internationally at the same time? :P

    I'm just yanking your chains.:D

    I've thought about something like that before, but I haven't really had the experience to be comfortable with it yet. But I guess from a diversification perspective that would make a whole lot of sense.

    How about you make a post every few months to tell us how it's going? :D

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    1. I guess one of the perks of being based overseas is the availability of investment options, many of which aren't yet available to Philippine-based pinoy investors. For those interested, there is a new variable life insurance product from Manulife Philippines called ASEAN Growth Fund - a dollar fund investing in ASEAN equities. This is not an endorsement from me and it will probably take me several months before choosing an asian fund that I'm comfortable with. As always, conduct thorough research before investing.

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