In times of economic uncertainty, taking investments offshore as a means of diversifying makes sense for a discerning investor.
However, going offshore is something many tend to believe is limited to the ultra-rich and affluent. There’s also a misconception that offshore investing is all about buying property in London or a summer villa in the south of France. But this isn’t the case. Technology has made offshore investment a lot more accessible to investors who don’t have large amounts of capital to invest. Despite this, many myths about investing, as well as psychological barriers, still abound.
In this Power Hour session, Sandesh Ganasee from Standard Bank Webtrader talks about the pros and cons of going offshore, the biases at play when investors focus on local investments and some of the things investors must take into consideration when they decide to go offshore.
He also covers the benefits of using ETFs as a vehicle to invest offshore when you do not have the time to delve into individual offshore stocks. He also looks at local ETFs that investors can use to gain offshore exposure and explore the importance of rand-hedging, especially in times of volatile currency moves.