International Mutual Funds

International Mutual Funds

As we all know , international mutual funds have long been a powerful and attractive investment option offering by many mutual funds companies in the United States . International mutual funds may be comprised of the stocks and bonds of companies based outside the United States and of bonds issued by foreign governments

In this paper I 'm going to address the following issues

US investing in international mutual funds

risks and benefits of international mutual funds

liquidity in emerging markets

policies for improving international investment management

US

Investing in International Mutual Funds

Few investments are as widely appealing as mutual funds . Firstrade website gives the following account of US investing in international mutual fuds

Investors interested in foreign-based stocks have a number of choices One attractive route , which provides both ready-made diversification and professional management , is investing in a mutual fund . Such funds may have holdings from a variety of geographic areas or may confine themselves to stocks from a single country . International funds limit their holdings to markets outside the U .S , sometimes to a specific region such as the Pacific Rim or Europe . In comparison , global funds typically invest anywhere , including the U .S . Because global funds tend to have 15 to 40 of their assets in the U .S , they are less sensitive to swings in the foreign exchange rate

In recent decades , the US investment in mutual funds in general and international mutual funds in particular , has risen significantly

According to IMF observations , as presented in HYPERLINK "http /www .amazon .com /exec /obidos /search-handle-url /index books field-a uthor Ito 20Takatoshi /163201 " Ito 's International Capital Markets : Developments , Prospects , and Key Policy Issues .growth has been especially marked in mutual funds . U .S . mutual fund assets have risen at double-digit growth rates since 1970 when they amounted to just 48 billion .2 By the mid-1980s mutual fund assets had reached 495 billion , and by April 1997 they billion .First , in an increasingly global financial market , the importance of geographic presence has lessened , and thus fund management companies have responded to competitive pressures by consolidating their operations geographically . Global asset management companies are increasingly consolidating operations in one center , such as San Francisco [and] Boston ' HYPERLINK "http /www .amazon .com /exec /obidos /search-handle-url /index books field-a uthor Train 20John /163201 " Train refers to the State Street Bank of Boston as to , the leading custodian of international mutual funds

Certain geographic centres of international mutual funds investment are present inside the US , as well as outside the country

We may conclude that the global nature of contemporary financial environment makes investing in international mutual funds easier and safer , and this trend is likely to continue

Still legislative and regulatory improvements that enhancing both the competitiveness of U .S . money management firms abroad and the level of service to investors in foreign markets , is necessary

I would like to analyse the chart presenting the statistics concerning the most recent operations of US international funds

HYPERLINK "http /money...