- Look for managers with a lot of local knowledge
- Be prepared for volatility
- We highlight some interesting single-country funds
Geographic diversification is a staple of all good portfolios. But you can attain it in many ways, from buying one or two global funds to using a different fund for each region. Or you can invest in funds that focus on individual countries.
Single-country funds are suitable for investors who are happy to keep a close eye on their portfolios. An MSCI All World tracker can be left untouched for years – the geographical split of your portfolio would still reflect the weightings of the global stock market. But with single-country strategies, you need to be aware of what is going on in each market and rebalance as required.