- 1). Determine whether you want to concentrate your international investments in a particular part of the world or a particular segment, i.e., emerging markets, Europe, Asia, or if you want to invest more broadly in countries outside your home market.
- 2). Contact the mutual fund family where you currently have investments and ask about any international funds they offer. Ask for a prospectus for each fund you are considering. Read the prospectus carefully, especially the pages detailing mutual fund fees and expenses and investment returns. The prospectus should include a comparison of the fund's return against the relevant international index.
- 3). Decide how much you want to invest in each international fund you have identified. If you plan to invest in several different sectors of the international market, you might want to allocate a percentage of your total international money to each of those funds. For instance, if you have $30,000 to invest internationally, you could put $10,000 each into a low-cost emerging markets fund, a low-cost Pacific Rim fund and a low-cost European fund.
- 4). Complete an application for each fund you plan to invest in. If all of the chosen funds are within the same fund family, you can fill out a single application and detail how much money you wish to allocate to each mutual fund. If you plan to invest with different families, you will need to complete separate applications and write separate checks for each investment.
- 5). Mail your completed applications and your investment funds to the address listed on the application. Note that some mutual fund families use a separate address for overnight mail, so be sure to double-check the address and make sure you send your funds to the right place.
- 6). Track the performance of your international stock market investments with each statement, but do not get too worried about short-term market moves. The stock market, including the international market, is a long-term investment. Keep an eye on the quarterly and annual reports you receive to see how your funds are doing when compared to the market averages for the countries where they invest.
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