Regional funds have developed rapidly in recent years, thus promoting the process of fund globalization.
The development of regional funds is related to investors' expected annualized expected returns, which bear higher risks than global funds. Of course, expected annualized expected returns are always accompanied by risks, so investors' possible profits will also be
Higher than global stock funds.
Investing in regional funds requires greater risk tolerance and backup capital.
1. What is a regional fund? What does a regional fund mean? Regional funds aim to invest in specific regions and can diversify the political, economic and other systemic risks required to invest in a single country.
Although regional funds diversify their investments in the stock markets of various countries in the region, the risk is still higher than that of global funds because stock markets in the region often experience simultaneous declines.
However, if the stock market in the region you invest happens to be in a bullish trend, investors may make higher profits than global stock funds.
Common regional funds include European, Asian, and Latin American funds, which all fall into this category.
Since regional stock markets often experience simultaneous rises and falls, the risk is still higher than that of global funds. However, if the stock market in the region you invest happens to be in a bullish trend, investors may also earn higher profits.
2. Development of regional funds Regional funds have developed rapidly in recent years.
Take the U.S. market as an example. In the early 1970s, the activities of institutional investors in the U.S. capital market, including various pension funds, were almost entirely limited to domestic activities, with almost no overseas assets.
At that time, the issues of securities investment portfolios and their internationalization strategies were actually only topics discussed and debated by securities analysts and academic circles.
In the 1980s, the internationalization of the securities market and the securitization of international financing complemented each other, providing many opportunities for global investors. The U.S. foreign securities investment portfolio began to develop steadily. By 1991, when the total global securities flows accounted for the proportion of international capital flows
When it rose from 15% in 1975 to 1979 to 75%, well-funded pension funds in the United States had invested 4% of their assets overseas.
In the 1990s, global regional funds developed rapidly. Among them, the number of regional funds in the United States increased rapidly from 23 in 1990 to 203 in 1999. Fund assets increased from US$3 billion to US$51 billion in 1999, with an average annual growth rate of
37.0%.