how do i invest in countries with higher interest rates, e.g, brazil.?

Question

i want to invest in something safer like a savings account, would a savings account there have a higher interest rate? i read that Turkey has a 17% intererst rate, some nice returns if it is a savings account.

Answer 1

The 1st responder gave you a good answer. If you just wish to invest in Brazil, there is this option. EWZ, an index fund based solely on the Brazil equity market.

You did mention high interest rates. From that perhaps I should assume you are interested in international debt instruments rather than equity instruments.

Here is a selection of some.

GHI currently pays a 8% dividend. Invests in high income global debt instruments including those of Brazil. One bad thing about this fund is that it is currently trading at an 8% premium to net assets. Not good.

FAM currently pays about 8.3%. Invests in the same stuff as GHI. It is currently trading at about a 1% discount to net assets.

There are a bunch of others that pay around 6.5% to 7.5%.

AWF 6.8%, EHI 7.3%, EMD 8.5%

http://www.etfconnect.com/select/FindAFund.aspx

Answer 2

Try investing in (ILF) , a south american ETF capturing the growth Brazil, Mexico, Chile and Argentina are experiencing. It's well diversified among these countries and sectors nad has posted 40%+ returns for the last 3 years annualized.

Answer 3

Do you want to invest in stocks or in bonds?

If you want stocks an ETF is the way to go.

If you want bonds you need to add to the usual bond risks (default, raiting downgrade), the risk of devaluation of the local currencies.
Some countries allow investment in US dollars, some don't but they provide futures of their dollar vs. the local currency, which work similarly to a put stock option, they give you the right but not the obligation, to sell your currency at the strike price no matter the current market price.

A friend of mine had some venezuelan bonds, paying 13.5% yearly in dollars, but the default risk, or worse yet the confiscation risk is high in such a commie country, so he sold them.