One savvy secret of many stock market investors is to diversify. Owning a healthy mix of electric, heat, technology, and other themed stocks along with a mutual fund or two allows them reduced blows to their portfolios value in case one stock performs badly. International mutual funds are a great way to diversify your portfolio. Nowadays, many investors are switching to international mutual funds as a way to balance.

Did you know that many of the top brands in the United States are owned by international firms? Potentially profitable stocks come from all corners of the globe. It figures, being that US based stocks account for only 30% of the world’s stock with more than 50% of all public companies having their headquarters outside of the country. By investing in international mutual funds, you can take advantage of company positioning. International stocks have had higher returns than U.S. markets in 20 out of the last 30 years.

Plus, with the advent of the global economy, many currencies are joining forces and countries are turning towards the European Union (Slovenia, anyone?) With borders between countries becoming more penetrable to economic opportunity, international mutual funds are gaining more ground. Remember, countries whose businesses used to be subsidized are not using stock ownership to boost their profits. These profits always call for a win-win formula. All in all, international mutual funds are a great way for investors to diversity their portfolios.