Traveling abroad for better returns


While there's no place like home, sometimes you have to get out of your own backyard -- and that includes investing. Impressive growth in emerging economies such as China and India will boost investments that provide exposure to these markets, says the new Emerging Wealth report from consultancy Watson Wyatt. "We believe that emerging market economies will continue to grow strongly, due to a mix of rising productivity, economic and financial reforms and favorable demographics," says Craig Mercer, Watson Wyatt's senior investment consultant, in a prepared statement.

But investors who want to globalize their portfolios should also remember that with the aggressive returns some of these markets can offer come risks, including currency fluctuations and political instability. That said, investors can get in on the international action through index funds or other broad investments that can reduce the chance of any major downside.