Global Investment can be risky. Therefore, investors should have proper balance. There should be a good mix of countries and assets spread over to different sectors. This also means that the sectors and countries so selected to be a part of one’s global portfolio should be unrelated. This is supposed to reduce overall risk and maximize returns.
There are many risks involved with global markets especially the investments that are directed at emerging markets like China and India. These countries are still evolving. Their institutions are not yet fully developed and there are serious legal problems. Then there are cultural problems as well. In view of all these factors, one should take all the precautions while selecting companies and countries.