how the risk of interest rate can be managed or diversified when investing in emerging market?
964830
I assume, that an investor is investing in both stocks as well as bonds in emerging markets. The risk premia associated with stocks will change with varying interest rates. One way to reduce this risk is by diversifying your investment in stocks accross different countries. On the other hand, if one is investing only in bonds issued in emerging markets, one can take care to invest in a short duration bond portfolio so as to minimize interest rate risk.
800198
give me all your money and ill help you...ha ok ok i wont joke...\n\nhonestly...it depends on how you want to weigh your options theres MANY ways to invest... And the more you can gain in an investment the more of a risk there is.  If you want a low to zero risk investment then you could simply but it savings or bonds...and save with compound interest.  (putting the interest earned back into the same account.)  If you definetely want to try stocks out which there's an adequate risk rate then you first need to know the difference.  There's common stocks and there's preferred stocks.  Common stocks are the most ...well..common stocks there are...Over the long term, common stock, by means of capital growth, yields higher returns than almost every other investment. This higher return comes at a cost since common stocks entail the most risk. If a company goes bankrupt and liquidates, the common shareholders will not receive money until the creditors, bondholders and preferred shareholders are paid.   You could also invest in prefered stocks.. With preferred shares, investors are usually guaranteed a fixed dividend forever. This is different than common stock, which has variable dividends that are never guaranteed. Another advantage is that in the event of liquidation, preferred shareholders are paid off before the common shareholder...That's about all i'll go into here...I know pretty much all the rest but should help...Just find a company you have faith in and go from there.
99413
Securities markets fluctuate however they can also surge and crash. India, like japan is in a bull market. The sinsex has not boomed to the point of a collapse-india is just going to grow for a long time. I think that India is a relatively safe place to invest for the next few years. I would not worry of a "bust". My suggestion would be to buy Indian companies that trade on US exchanges though. ie. HDB
647005
If there are, I am not aware of them. You do have other options that you might consider, if there are in fact none. One is to invest in either a mutual fund or a closed end fund that invests in European stocks or Asian stocks. A couple of closed end funds that you might consider are TDF, investing in Chinese stocks and SWZ investing in Swiss stocks. \n\nIn my opinion, doing so has some advantages over investing in currencies. One is that they pay a dividend and secondly they are also tied to the prospects of the companies that they invest in. Whereas investing in just the currencies, the prospects are tied just to the currencies. \n\nThe two I mentioned are just as examples and not necessarily recommendations. Another example is GIM, a closed end fund that invests in foreign debt instruments. The advantage of that again is dividends plus avoiding the dollar.
356050
Don't try to time the market.  There's a ton of money in the global financial market.  Just periodically invest by your asset allocation percentage.
690930
If that's what you really think, then buy the Euro Currency Trust, which trades under symbol FXE.\n\nBut currencies are a risky game, trends could reverse tomorrow on one international event or the other.  A diversifed portfolio makes more sense, and is safer.  Be careful.\n\nHope this helps!\n--J.
558605
Depends on what your goal is. The fund invests in bonds. You are aware that interest rates are rising???  That is not good news for fixed income investments, especially those capitalized in U S dollars. The dollar is dropping too. \n\nYes, it does pay a decent dividend; but if your capital decreased, that might not be too good a consolation.\n\nIf you like closed end fixed income funds, check out GIM. It invests in foreign bonds. These are not subject to the falling dollar. \n\nAlso look at closed end funds that invest in foreign stocks especially those of Asian countries and especially China. For example TDF, but trading at a premium right now, and JFC, still at a discount. \n\nHere is a link to closed end funds investing in foreign securities.
367096
Commodities are very risky and in order to dissipate risk you will need a sizable portfolio. The safes and most strategic way is to diversify through Commodity based Mutual Funds or even better Exchange Traded Funds (ETFs). Check out ticker: DBC. Best of Luck
1085289
Well, in Switzerland you are able to invest in any convertible currency - so the interest rate depends on the currency and not the country!\n\nIn Swiss Francs, interest rates (for investing) are very low. Expect less than 1% on short-term investments and something around 2,5% for a 10year fix investment - highest security rating.\n\nNow, what exactly are you looking for? Sum?\n\nI have worked in a major Swiss bank, so I am able to give you some advice, even per e-mail.
620499
Interest rates and bond values move inversely. Think of a playground see-saw. Interest rates rise, and existing bond values fall. Inflation is something that has and will cause the federal reserve to raise short-term interest rates, which causes existing bond prices to fall. If you are investing in bonds for the income they generate (regular interest payments from the issuer), then you'll be OK. If you're investing in bonds with the intention of selling them later for a gain, you may not be successful. Of course, even the experts are really bad at predicting interest rate moves, so don't try to predict the future too much. If you buy individual bonds, pay attention to quality and consider building a bond ladder. If you are working with a smaller amount of cash, consider bond funds. Also, be sure to balance this investment with some equity (stock) investments to give you diversification. Good luck!
293467
A 5% return would be pretty average, depending on the stock, but you shouldn't count on a monthly "income" from it.  The market moves up and down, but as a general rule it moves up.  Of course, you risk investing in a stock that drops, and then you could lose that much or more each month, which is why diversification is vital.  The safest bet would be to invest it in a few different mutual funds, which provide instant diversification
11320
Invest in emerging markets like India and China
782479
1) The minimum investment in mf-mis is varied from amc to amc.If u want to invest in growth option the amount is arround Rs 10000/-.But if u want to invest in monthly dividend option the minimum amount is arround Rs25000/-.\n2) No the monthly dividend is not assured.It may fluctuate,may not pay every month.\n3)Very good question.This is as per your risk return appetite u should compare it which 1 is best for u.If u are a tax payer then mutual fund-mis is the best option for u.if u invest in growth option only long term capital gain tax is applicable to u.But if u invest in mly/qly/yly dividend option dividend is tax free in the hands of u but amc have to pay tax to government.So growth option is the best for absolute return.U may opt for systematic withdrawal plan.In the case of pomis it is assured @8% to u.but interest is fully taxable.
164477
As you have realised, your portfolio is very heavy on property.\n\nOne of the fundamentals of investment risk management is to diversify. When you are diversified when one investment type experiences a decline another might go up. \n\nIf you are carrying no debt on your 2 properties you are actually in a good position but might need to move things around. Are all of your properties currently rented? What is happening to the income from that?\n\nYou may want to consider buying some shares as an additional investment. They will provide you with a semi regular income and can be sold very quickly and in small parcels, unlike property. \n\nYou'll obviously need some money to purchase shares. Would you consider selling one of the units in your complex for this purpose? Or taking a loan against the units? \n\nAnother investment category it sounds like you should be strongly thinking of is cash. You should have a "rainy day" account that could keep you going for at least a couple of months.\n\nI would suggest you talk with a financial planner. Shop around for a decent one and understand what services they offer and how they get paid e.g. are they going to just flog product from one place. \n\nSounds like selling the unit block and converting the proceeds to a smaller block or less units and shares and cash may be a good idea.\n\nI am not an expert and don't know anything about your situation so it's hard to comment
763061
Basically, international interest rates and exchange rates, both spot and forward, are closely connected to each other through "international interest rate parity" . This means that when you invest in a higher interest rate country you expose yourself to currency (FX) risk. That is, you risk that the move in the exchange rate will adversly affect your return in a foreign CD. However, if you hedge your currency risk then that interest rate premium disappears. That is, the interest rate premium/discount is priced into FX forwards and all other derivative instruments.
614050
Put $5,000 into an international mutual fund and the other $3,000 into a domestic S&P 500 mutual fund.  Put the remaining $2,000 into a small company fund.\n\nI recommend e-trade mutual funds as they have the lowest management fees (under 1%).\n\n\nInternational - ETSPX\nDomestic - ETINX\nSmall-cap - ETRUX\n\nI recommend mutual funds because you don't want to be spending all your time researching and keeping up with the market.  Let the profesionals do it for you.
677237
I've been investing a lot in foreign stocks.  Gold is obviously a great hedge against falling currency values, but it isn't a productive investment.  It may go up in price, but it doesn't grow in the way businesses can.  The same can be said for investing in foreign currencies.  You can hedge against the dollar with them, but there's no growth in currencies either.  \n\nIf you think it's only the dollar that will be falling (and not all currencies in a worldwide inflation), then investing overseas is the way to go.  And if you want to preserve the opportunity for growth in addition to simple hedging, buy stocks in those markets that you feel are safe.