Why should you invest in a global fund?

Since 2008, investors have had to endure many scary periods filled with unnerving uncertainties. With this backdrop, investors have developed a negative bias, a prejudice that the period from 2008 to 2012 is normal when they were actually an anomaly.

Data from the United States, Europe and China, shows that the global economy is normalising – albeit on a different path.

When one takes a longer-term view, the last few years were just a glitch in an unprecedented global economic transformation which has been unfolding and which is still continuing to unfold.

As we have repeatedly advised as part of our iCapital Long Boom theory, this global economic transformation is essentially led by China. She became the world’s biggest exporter in 2009 and surpassed Japan as the world’s second-largest economy by 2010. In 2012, China surpassed the US to become the world’s biggest trading nation, as measured by the sum of exports and imports of goods.

From a longer-term perspective, this is the norm, not the period from 2008 to 2012.

Global funds like i Capital International Value Fund (ARSN 134 578 180) or i Capital Global Fund allows investors to profit from the developed and developing markets and gain from the vast unfolding global opportunities. It allows investor to lower risks without lowering their returns.