Risks faced by South African offshore investors

Abstract

Risks faced by South African offshore investors is a study that seeks to identify and rank in order of importance the risks that are faced by South African offshore investors. As a global player, South African investment institutions exchange trades with institutions in other countries. These trades are, however, not risk free. Trading in foreign markets can lead to institutions collapsing if their investment plans are not well formulated. There are many factors to consider when planning an offshore investment. For example, what products to invest in, which countries to invest in, why invest in such countries or institutions, how long is the investment going to be, and what are the expected returns, taking into account all the risks involved. All these questions and many others should be answered before investing offshore. South African investment brokers registered with the Financial Services Board and licensed to trade offshore were selected as the target population to respond to a questionnaire designed for this study. A web-based questionnaire using LimeSurvey was used to collate data from the respondents. The SPSS statistical methodology was used for the analysis from where recommendations and conclusions were drawn.