It is all over the news the stock markets in China and India are blazing a northward trail. Most of us in the western world have cringed at jobs lost and the negative effects of the globalization of economy. Meanwhile the astute investors have made hay even while the sun was shining on the other side of the globe.

Some investors foresaw the potential of these economies and the huge markets they offered (India and China being the two most populous countries in the world). They staked a claim in these economies early and have reaped a gigantic benefit.

So you ask how does a common man invest internationally.  Easiest way is through an international mutual fund.

Just as domestic mutual funds domestic markets, international stock funds invest in international markets.  International stock funds build a portfolio primarily of the common stocks of companies based in overseas markets.

Isn’t it too late in the game, though?

Even as the big two are maturing, according to analysts they still a strong upside potential. Infrastructure investment is the top priority for India for the next several years. This is bound to create investment opportunities which can fetch a sizeable return.

Other markets in Asia, Europe and Latin America are also on the radar of the international fund managers seeking more exposure to global growth.

As a noted economist observed, we all are of the belief that that our home country is safe, and only marginally risky. But from an unaffiliated perspective on an average, most of the world is a pretty peaceful place too. And, it is the average that matters.

In the era of global economy, not having an exposure to international funds in your investment portfolio could mean you could be missing an opportunity. While international funds are a great way to diversify an existing portfolio, forget not caveat emptor.