Expert Guidance:
The global portfolio
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The global portfolio
1. The global portfolio
2. The global economy
3. Developed & emerging markets
4. International equities
5. International funds
Types of funds
Global & international funds
Regional & country funds
Closed-end funds
Diversification check
6. International bonds
7. Global investing risks
8. Taxes on international investments
9. Why invest internationally?
 
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Diversification check

As you diversify your fund holdings, keep in mind that some of the domestic funds you already own could have international investments. The SEC requires that any mutual fund whose name suggests a certain kind of investment must have 80% of its portfolio in that type of investment &38212; but it's free to invest the other 20% as it wishes. So a fund with U.S. Equity in the name may actually have up to 20% of its holdings in investments that aren't U.S. equities.

You can find information on a fund's international and domestic exposure on the fund's Web site, or on research sites, such as Morningstar or Lipper. The portfolio data should give you a breakdown of what percentages of the fund's portfolio are in which countries, as well as information on the fund's largest holdings. However, remember that the list of holdings is updated only twice a year, so it may be out-of-date.


 
Jeffrey RosensweigJeffrey Rosensweig, Goizueta Business School, Emory University
         
   
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