Market Insight
Home, Sweet Home
Why do funds so often favour investments close to home? This tendency, which is called a home bias, occurs when an investor allocates a disproportionate weight to shares and bonds of companies from their home market at the expense of a more globally diversified portfolio. We touched on the phenomenon in our article on multi-asset investing earlier this year and thought it would be useful to explore the topic further with you.
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Risk Warning
This article is provided for information purposes only. All material(s) have been obtained from sources believed to be reliable, but accuracy is not guaranteed. The views and opinions expressed are the views of Fundhouse and are subject to change based on market and other conditions. Fundhouse is the trading name of Fundhouse Bespoke Limited. Fundhouse provides investment management services to professional clients and does not provide financial advice. Importantly, this note does not represent investment advice, and any reader should always speak to their financial adviser before making any investment decisions. Please note that the value of any investment may go down as well as up, and you may lose capital when investing, and the value of your investments may not always increase. Please ensure that you are comfortable bearing financial losses and that you are comfortable taking a long-term investment view of five years or more.
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