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Investment & Portfolio Management: Risks and Opportunities in the International Investments

Risks and Opportunities in the International Investments
As we noted, overseas investment, even after some recent chills, remains a hot prospect in the financial community. Investor demand for ways to invest in strongly growing developing markets such as China, Japan, India, and Thailand has led to the creation of several new funds. These include:
- The China Fund (NYSE: CHN) [http://finance.yahoo.com/q?s=CHN%2C+&ql=1],
- India Fund (NYSE: IFN) [http://finance.yahoo.com/q?s=IFN&ql=1],
- Japan Equity Fund (NYSE: JEQ) [http://finance.yahoo.com/q?s=JEQ%2C+&ql=0],
- Thai Fund (NYSE: TTF), [http://finance.yahoo.com/q?s=TTF&ql=0],
- Market Vectors Vietnam ETF (VNM), [http://ca.finance.yahoo.com/q?s=VNM&ql=0],
- The Taiwan Fund, Inc. (TWN), [http://ca.finance.yahoo.com/q?s=TWN&ql=0], and several others.

Assume that you are an investor planning the placement of several million dollars -- perhaps from a source such as the sale of your Internet start-up company to Google or Ebay (it still happens, if not everyday at least every month or so -- opportunities abound!). You are looking at the long term; you foresee continuing the investment for at least fifteen years before you need to begin to recoup your funds.
Further assume that you have decided to go with either a Japan Equity fund or an India fund. But most of the Japan and India funds are very new, without much of a track record so far. So you will have to manage with limited information as to the performance record of the funds, and supplement what's forthcoming from the funds with your own diligent research.
Please read the information in the background material, look for more information [search on Google (www.google.com) or Yahoo (http://finance.yahoo.com) or any other sources for additional information
1) Would you choose to invest at least 10% of your long-term portfolio in a Japan Equity Fund or in an India Fund? What would you expect to happen to your money? Why?
2) Based on your analysis and findings, which fund (Japan Equity Fund or India Fund) would you recommend to other investors? Why?
In your report, please include the followings together with other necessary information that you think should be included:
●The long-term potential for growth in Japan and India
●The risk involved with investing in either of these countries
●The potential for major political or economic upheaval that might impact the performance of the fund
●The diversification benefits of investing in either country -- will investing in Japan or India have diversification benefits for your portfolio, as opposed to solely investing in U.S. funds?

Solution Preview

1) Would you choose to invest at least 10% of your long-term portfolio in a Japan Equity Fund or in an India Fund? What would you expect to happen to your money? Why?

I would choose to invest 10% of long term portfolio in an India Fund. The main reason for this investment is the type of market both countries are and the level of risk associated with these countries. I can expect my ...

Solution Summary

The solution discusses the risks and opportunities in the international investments.

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