If you want to catch the South American boom, you need to know how to invest in Chile. Chile is a small country on the west coast of South America. Its rich mineral deposits, such as iron and copper, have made it one of the chief exporters of raw metals in the world. Those that invested in Chile in the past few years have been greatly awarded largely due to the high price of copper. This article will guide you to find your investment in Chile.
- Understand the risks. You must understand the driving force of Chile’s economy before you consider invest in Chile. It is a highly export-driven economy. Copper makes up to 40 percent of its exports, while other minerals and natural resources make up for the rest. Therefore, the Chilean market is highly susceptible to raw metal price fluctuation.
- Consider your vehicle of investment. How would you want to invest in Chile? There are many ways you can invest in Chile and you have to find one that fits your appetite. Depending on your comfort level for risks, you can invest in Chilean company by buying their stocks, exchange-traded funds, mutual funds and many other alternatives.
- Invest in a Chilean company. There are many good, stable Chilean companies that are highly profitable, like the Chemical & Mining Co. of Chile Inc. You can profit nicely through buying the stocks of these companies.
- Invest in a fund that tracks Chile’s economy. Consider investing in a exchange-traded funds or mutual funds that either track Chile’s market index or its mineral price index, such as the ETF from Barclays or the iShares MSCI Chile Index Fund.
- Consider other alternatives. Do not get yourself restricted into a narrow sector. You can invest in Chile through many other methods. Foreign companies that provide services or technologies to Chile make also make a great investment choice.
- Due to its narrow focused economy, Chile's market is highly volatile. You should take great caution before investing.