Why might you consider an international portfolio of investments? Please answer in your own words

Investing in an international portfolio can be beneficial for several reasons:

1. Diversification: By investing in international markets, you can spread your investment risk across different economies. This can potentially reduce the impact of a downturn in any one particular market on your overall portfolio.

2. Potential for Higher Returns: Some international markets may offer higher potential returns than your home market. This could be due to factors such as faster economic growth, favourable demographic trends, or structural reforms.

3. Access to Different Industries and Companies: International investing can provide exposure to industries and companies that may not be available in your home market. For example, if you are based in a country with a small technology sector, investing internationally can allow you to gain exposure to this industry.

4. Currency Diversification: Investing in international assets can also provide a hedge against currency risk. If your home currency depreciates, the value of your international investments (when converted back into your home currency) may increase.

5. Inflation Protection: International investments can also provide a hedge against inflation. If inflation rises in your home country, the real value of your domestic investments may fall. However, this may be offset by gains in your international investments.

Remember, while international investing can offer potential benefits, it also comes with risks such as currency risk, political risk, and differences in regulation and market practices. Therefore, it's important to do your research and consider seeking advice from a financial advisor.