International Equity Funds — Definition

International equity funds hold stocks of corporations based outside of the United States. International equity funds invest mostly in the stock of overseas companies.

People purchase shares of such funds as a means of globally diversifying their portfolio. There is some degree of currency risk involved in international investments, which may necessitate a currency hedging strategy if an investor is heavily invested across the globe.

How Do I Get Exposure to Other Currencies?
What is Foreign Investment?
What Happens if I Don’t Diversify my Portfolio Sufficiently?

Keywords: mutual funds, hedging, international mutual fund, currency risk,

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