Investing in UK-Listed Companies
We all know that protecting your assets and keeping your investment portfolio as diverse as possible is important to building up your investment and that’s why many investors look to keep some of their assets outside of the US. Getting started in investing abroad isn’t as difficult as you might imagine and can do a lot to bolster your portfolio.
If you’re looking to invest abroad, one of the best ways to see a return is to invest in the strong markets in the UK. There is a low barrier of entry to investing in UK-based funds that invest in foreign shares and this is what most American investors choose when making their first foray into the UK markets. As the fund will be invested in foreign shares, this approach will net you a diversified portfolio while saving you the trouble of selecting individual stocks. You can choose between a closed-end fund, exchange-traded fund or open-ended fund, but all of them will enable you to trade through a broker. Closed-end funds and exchange-traded funds are dealt through a stockbroker, while open-ended funds go through a financial advisor or specialist funds broker.
If you want the freedom to choose your own stocks, buying UK-listed companies that receive a notable chunk of their revenue from abroad is a sure bet. A large number of foreign companies choose to list their shares in the UK as it can be easier for them to raise money in London, while many FTSE 100 companies* receive a notable amount of their revenue from emerging markets abroad. You can select your shares and then purchase them through your stockbroker just like any other stock.
The most important thing when investing in markets abroad is to find yourself a good stockbroker, but with that in your pocket investing in the UK is a breeze and can net you huge rewards.
