One of the first things you'll learn as an investor is to never put all your eggs in one basket. This means you need to make your investment portfolio as diverse as possible. To do this, you have to build a portfolio composed of different types of assets. So, instead of focusing only on stocks, it will also be a good idea to invest in bonds and property. Diversification can help minimize your risk exposure and maximize your returns.
Why invest globally
If you want to access more growth opportunities, it's worth looking into global investments. As the name would suggest, this is where you invest in equities, bonds, and other asset classes abroad on top of local ones you already own. The following are its benefits:
It further diversifies your portfolio. Different countries and regions will behave differently, which prevents your portfolio from being overly sensitive to downturns in local markets. If you're investing in different currencies, diversifying can also limit the impact exchange rates have on your currency portfolio.
It gives you access to new investment opportunities. Have you ever considered investing in technology companies like Amazon and Meta? Some investment plans in the Philippines allow you to reach these exciting markets, increase your potential returns, and access companies that would have otherwise been out of your reach.
It helps minimize your exposure to market volatility. Markets and assets occasionally experience volatility or unpredictable and occasionally sharp price movements. Factors that can cause volatility include interest rate hikes and political instability. The impact of these events varies from one country to another, which is why investing globally can minimize your exposure to volatility, especially if you focus on mature markets and politically stable countries.
Global investments made easy
While you've probably heard of the concept of global investing, you might have been hesitant to explore it because it may sound complicated. The good news is more convenient options are available these days that allow you to invest globally and get insured at the same time. It's an ideal way of securing your financial future.
AXA Philippines, for example, has Peso-Denominated Dollar Funds, which you can invest in via its insurance and investment plans. These funds allow you to invest globally using the Philippine Peso currency, so you don't need to open a separate US Dollar account. Two types of these investment funds are Global Dynamic Allocation Funds (GDAF) Peso and Global Advantage Fund (GAF) Peso. Both are expertly-managed global funds, with GDAF focuses on different markets in Asia, the US, and Europe, while GAF invests in fast-growing technology companies like Apple and Microsoft. You can also create a highly diversified portfolio consisting of local and global investments, all while getting insurance coverage in just one policy.
You can access Peso-Denominated Dollar Funds via AXA's Asset Master. It's a one-time payment insurance and investment plan, which includes a 125% guaranteed life insurance benefit and access to global funds. It's a great way to potentially grow your wealth while protecting your loved ones' future by getting insurance in the Philippines.
Invest globally with AXA Philippines
If you're considering entering the global market, it's essential to discuss this with a financial advisor. They will help you create an investment strategy that fits your unique goals and needs.
Know you can game plan your future with the right savings and investment plan. Contact an AXA financial advisor to get started.
