Back to blog

Blog Feature

By: Sam Instone

Print this Page

June 6th, 2018

The danger of staying close to home when investing

Investment | Financial Planning

There are many behavioural biases to overcome when investing.

One of the most common that investors are prone to?

Home bias.

Although inoffensive sounding, home bias is a common investment mistake.

It’s investing too much of your portfolio in stocks and bonds in your own country, and not enough in assets elsewhere.

The result?

Investors are too concentrated in the movements of their domestic market and economy.

This increases their risk.

Minimises their returns.

And causes them to miss opportunities to invest in faster-growing markets.

Consider this.

The UK stock market is around 8% of the global stock market.

The average holding by a UK investor of UK assets, is around 50%.

That’s home bias.

Watch our short video and find out the common (yet false) justification for investing close to home…

Following your own hunches or the predictions of others will not deliver results over the long term.  

Being aware of home bias and diversifying globally, will.

GET STARTED TODAY

About Sam Instone

Sam Instone, Director at AES International, is passionate about positive change and ensuring international investors get better results.

  • Connect with Sam Instone