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Morningstar on Foreign-Funds

Are foreign funds part of your investment portfolio? Many experts say they should be.

Most experienced investors should consider allocating in the range of 5 - 15% of their assets to this category. (I've seen recommendations as high as 20%, but in my opinion, anything over 15% may be too risky for the typical investor.)

NO DART BOARDS PLEASE

Risk return for international / foreign funds is all over the map. So do your homework before taking the plunge. To that end, here's a recent article from Morningstar.com titled "Great Foreign-Fund Duos for Your Portfolio."

MY PORTFOLIO

In previous posts titled Dodge & Cox International Fund: '05 Mid-year Review, and Fidelity Diversified International Fund: '05 Mid-year Review, I reviewed my two international funds. With these funds I anticipate greater volatility relative to my core funds. On the other hand, I am also banking on higher returns over time.

Disclosure: At this point in my life Im a cautious investor. As such, my views may or may not be applicable to your investment needs. My portfolio also contains a high percentage of non-fund assets. I respect that your needs and tastes may differ.

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