Perhaps you've exhausted every aggressive investment option here at home, or you simply want to diversify your portfolio. Global funds give you a world of choices, but they come with increased risks.
While developing countries and emerging economies offer the greatest potential for growth, they also bring a higher risk of political unrest. And even if you stick to countries with well-established financial systems, an investment in foreign stocks means the risk of currency fluctuations. If you buy a German stock, for example, and the Euro rises against the dollar, your investment will be worth more. But if the Euro sinks relative to the dollar, your investment return is decreased.