My children are very young, and I’d like to invest directly in shares. But South African stocks have performed miserably lately. How safe is it to invest offshore and what should I look out for?The client’s need is the departure point when deciding on an investment solution.
It is important to appreciate that the longer time horizon necessitates taking more risk and you can expect significant volatility throughout the investment term. I would suggest taking a longer-term view of equity performance given how much it can change in a short space of time I would suggest taking a longer-term view of equity performance given how much it can change in a short space of time. Offshore investment as part of the overall solution is advisable as it provides exposure to a broader universe of economic markets and environments. The currency overlay also provides a diversification benefit as relative rand weakness during periods of turmoil then benefits the investor.