[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-638744-105":3,"detail-sidebar-cat-0-en-105":80,"doc-detail-638744-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","the-world-is-your-oyster-investing-with-a-home-bias-can-be-risky","The World Is Your Oyster - Investing with a home bias can be risky","","The article argues that investing too heavily in one’s home country creates unnecessary risk by limiting exposure to opportunities elsewhere. It emphasizes geographic diversification, noting that economic and market issues at home can harm portfolio performance. Using index comparisons, it highlights potentially stronger global returns than a purely local benchmark. It also explains practical approaches to overseas investing via funds and unit trusts, while addressing currency risk and the role of currency hedging, alongside investment-related notices.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/healthcare/","Healthcare",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/the-world-is-your-oyster-investing-with-a-home-bias-can-be-risky/638744/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/the-world-is-your-oyster-investing-with-a-home-bias-can-be-risky/638744.png","ImageObject",300,407,{"name":42,"@type":43},"Connor ","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-09","2026-10-22",true,{"@type":52,"interactionType":53,"userInteractionCount":33},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"Why can investing with a home bias be risky?","Question",{"text":62,"@type":63},"Home bias can cause investors to overlook opportunities abroad and increases exposure to risks stemming from economic and financial market conditions in their home country.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How does geographic diversification help investors?",{"text":67,"@type":63},"Diversifying geographically can reduce risk because returns can be less dependent on a single country’s economy and market performance.",{"name":69,"@type":60,"acceptedAnswer":70},"What options can help investors access overseas markets?",{"text":71,"@type":63},"Investors can research and buy individual stocks in other markets, or use unit trusts/funds available locally, which typically spread holdings across a diversified pool managed by professionals.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},638744,1792868649,{"code":4,"msg":81,"data":82},"success",[83,87,91,95,100,105,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":92,"show_sort_weight":93,"slug":94},"Exam",70,"exam",{"id":96,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},5,"Comic",60,"comic",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},6,"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":107,"slug":108},7,40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":96,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":106,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":33,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":30,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":143,"read_time":110,"preview_page_count":4},687207022233,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","The World Is Your Oyster  \nVasu Menon,Senior Investment Strategist,Wealth Management Singapore,OCBC Bank  \nIt is tempting to invest the bulk or even all of your funds in your home countrybut there are dangers to investing with a home bias as you may be missing outon opportunities elsewhere.  \n# Investing with a home bias can be risky\n\nThere is tendency for investors to invest in stocks,bonds and financial assetsin their own country because of familiarity with companies in their ownbackyard.However,a key tenet to bear in mind when it comes to investingyour money is never to throw all your eggs into one basket.This is becausethings can go wrong with the economy and financial markets at home and itmakes sense to reduce this risk by diversifying geographically.  \nThis is especially so if you are employed in your home country and havebought a house there and invested in other properties as well,in which caseyou already have significant exposure back home and may be inadvertentlytaking on more risk than you realize,when you tilt your portfolio towardsstocks and bonds listed at home.  \n# Global markets can offer attractive returns\n\nThere could also be attractive global investment opportunities you aremissing out on by being too home-centric.  \nTake for example the Straits Times Index-if a Singapore investor hadinvested in the index over the last five years between 3oth November 2010and 3oth October 2015,the total returns in Singapore dollars terms wouldhave been 11 per cent or an annualized return of 2.2 per cent.  \nIn contrast,the MSCI World Index which includes an array of global stocks,returned a corresponding 73 per cent over the same period or a double-digitannualized return of about 12 per cent-significantly higher than what the STIndex offered.  \n# How to invest in overseas opportunities\n\nOf course this is not to say that you should steer clear of stocks listed on the local bourse-on the contrary,therecould be gems on the local bourse as well and it sill makes sense for investors to seek out and invest in some ofthese gems.  \nHowever it also makes sense for investors here to look beyond Singapore's shores even though they may not befamiliar with markets elsewhere.For those with the means and know-how,they could do their own research and buyinto individual stocks listed in other markets.  \nFor those with less time on their hands,a good way to invest in overseas markets is through unit trusts or fundsavailable here.  \nNo doubt these funds may cost you more than buying individual stocks but they can also be less risky as unit truststypically invest in a diversified pool of stocks,selected by professional fund managers.  \nThe trick of course is to pick the right fund managers and right funds and this is where a good relationship managersupported by good research can help you to zero in on attractive fund ideas.  \n# Beware of currency risk\n\nOne thing to bear in mind when investing in overseas stocks and bonds is currency risk.Currency markets have beenextremely volatile in recent years especially after severa major central banks like the Federal Reserve,Bank ofEngland,Bank of Japan and the European Central Bank embarked on quantitative easing to boost growth followingthe global financial crisis and the European debt crisis.  \nThe volatile currency market means that the currency overlay with overseas investments can affect returnssignificantly and one way to reduce currency risk is to through currency hedging.The good news is that some fundmanagers offer currency hedged unit trusts to reduce currency risk.  \nAn example of an overseas investment opportunity  \nSo where are some investment opportunities beyond Singapore's shores?In the equities space,our house viewfavours developed markets like Europe over Emerging Markets,as the former looks set to benefit from the ECB'sloose monetary policy while the latter is facing pressure due to the stronger U.S.dollar as the Fed looks set to raiseinterest rates soon.  \nFor Singapore investors ke","cbCairz4A2JTNDI9","https://ap.wps.com/l/cbCairz4A2JTNDI9","pdf",6053940,"English","# Investing with a home bias can be risky\n# Global markets can offer attractive returns\n# How to invest in overseas opportunities\n# Beware of currency risk\n# Makes sense to diversify geographically\n# Important Notice","[{\"question\":\"Why can investing with a home bias be risky?\",\"answer\":\"Home bias can cause investors to overlook opportunities abroad and increases exposure to risks stemming from economic and financial market conditions in their home country.\"},{\"question\":\"How does geographic diversification help investors?\",\"answer\":\"Diversifying geographically can reduce risk because returns can be less dependent on a single country’s economy and market performance.\"},{\"question\":\"What options can help investors access overseas markets?\",\"answer\":\"Investors can research and buy individual stocks in other markets, or use unit trusts/funds available locally, which typically spread holdings across a diversified pool managed by professionals.\"}]","The World Is Your Oyster - Investing with a home bias can be risky | PDF",1792698786]