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23 Jan 2026
Diversify your wealth portfolio through foreign investments
If you want to strengthen your portfolio, invest in different economies to make it more resilient. Here’s what you need to know to get started:
What types of foreign investments are available?
You can access a range of assets, such as individual equities, bonds, exchange-traded funds (ETFs), unit trusts, mutual funds and real estate investment trusts (REITs) in foreign markets.1 ETFs and unit trusts tend to involve assets across multiple c and industries, making them popular financial assets.2 For example, by investing in a single ETF, you gain access to a diversified pool of government and corporate bonds.
Why should I consider foreign investments?
Relying solely on the domestic market can restrict your growth potential. For instance, if you are based in Malaysia and invest only in Malaysian equities or funds, your portfolio may suffer if the local economy slows. Diversifying across markets can help reduce the risk of having your wealth portfolio tied to a single country.3 In the case of ETFs, choosing a ETF that invests across different countries and sectors can help spread these risks and reduce the impact of any single economy.
With foreign investments, you can also counter inflation and access industries and companies beyond your home market.
What are the main risks of investing internationally?
While diversifying your portfolio across markets can build portfolio resilience, international investments may expose you to higher volatility in emerging economies and varying regulations. You need to factor in foreign exchange risks. Foreign exchange movements can raise or reduce your overall returns. For instance, a weaker foreign currency against the Singapore dollar can cut into your gains when you convert back.
Investing across borders also involves several types of costs, including brokerage commissions, custody charges (for holding securities), corporate action charges and taxes.4 These costs will affect your returns.
Which foreign markets should I focus on?
Your foreign market choice will depend on your financial objectives and risk appetite.5 Markets vary in terms of maturity and offer unique opportunities at each level.6 It is important to know what you want and understand which market can best get you there.
The United States, United Kingdom, Singapore, Hong Kong and Taiwan offer stability and access to globally recognised corporations. Emerging markets such as India and Southeast Asia present higher growth potential but carry greater volatility. Frontier markets involve elevated risk due to weaker governance and liquidity but they may offer long-term growth opportunities for investors prepared to withstand short-term fluctuations.
What should I prepare before investing overseas?
As with every investment, Set clear goals, whether it is capital growth, retirement income or wealth preservation.1 Assess your comfort with risk and match markets and investment products accordingly. Decide on the amount of your investment capital and the amount of time you can commit to allow the investment to grow.
An investor preparing to pass wealth to the next generation may prioritise global growth funds for capital appreciation, while another planning for retirement may want a mix of international bonds and dividend-earning funds.
The world offers endless possibilities. At DBS Treasures, we provide insights and resources to help you explore international opportunities with confidence.
Grow your wealth nowSources:
1 DBS, I’m ready to invest, how can I start?, February 2023
2 DBS, Investing with only ETFs and unit trusts, February 2025
3 DBS, Diversify to help manage investment risks, January 2023
4 DBS, Costs and fees of investing in ETFs, April 2024
5 DBS, Dive beyond home waters: Expand your investment horizons, May 2025
6 DBS, Investing in foreign stocks, November 2023
Disclaimers:
This article is for information only and should not be relied upon as financial advice. Any views, opinions or recommendation expressed in this article does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability. This article is not intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.