The most common mainstream investments in most countries outside Australia are managed fund style investments.  A managed fund is a pooled investment where multiple investors invest via one investment vehicle (the fund) and the money is managed by a fund manager.

If you are going to invest in overseas managed funds, you should start by reading as much background information on the fund you are investing in as you can.  If the funds are being recommended by a financial adviser, you should still do your homework to satisfy yourself that the investment matches your tolerance for risk and is suitable for you.

After the Global Financial Crises there were a considerable number of ‘product failures’, particularly in the fixed interest, bond fund and commercial property markets.  Product failure can occur wherever you invest but is likely to be more prevalent where the financial services industry is less developed.  Once again, Caveat Emptor applies … you as the buyer must beware!

As well as considering the potential for income and growth from your managed fund investments, you should also consider the tax implications of the investment.  How much tax are you going to pay in the jurisdiction where you are based?  What are the tax implications of holding the investments if and when you go back to Australia?

Majenda Financial Pty Limited does not advise on any investments offered outside Australia.  We recommend that you seek local financial advice in the jurisdiction where you are based should you wish to invest in managed fund style investment