The world is getting smaller, and opportunities for profit are not just within our national borders. International stock mutual funds are usually managed by U.S. companies, but their portfolios are either entirely or mostly in foreign securities. These funds have foreign consultants and offices to track political and market conditions throughout the world.
Global funds invest all over the world, including the United States.
Single-country or regional funds concentrate on one country or a geographic region. Putting 10 percent to 30 percent of one's personal portfolio in international funds provides diversification. Over the past decade, a number of foreign markets have outperformed the United States. In addition, some sectors, such as telecommunications and utilities, have been growing dramatically. The number of competent and experienced portfolio managers handling these funds has grown, along with the number of funds offered.