As a first-time, or foreign investor, getting into the Irish market might seem ill-advised, given a lack of familiarity with how the market operates in Ireland. While the barriers to investing in any business internationally have fallen significantly in recent years, the investors themselves might not have the contextual knowledge to feel confident staking money over there.
However, with the right research and a basic strategy, investing in Irish markets and businesses can be done effectively, without playing a guessing game, or following trends, that many retail investors fall into. Whether you’re looking to invest in established Irish businesses or disruptive startups, here are a few things to consider before taking the plunge.
Research the Irish Market
Before investing in any Irish market or business, it is important to research and understand the market and industry trends, which thankfully is easily done from your phone or laptop. Start by looking into quarterly market reports and industry analysis to understand current and future trends that could impact your investment in Ireland.
Some industries that are currently thriving in Ireland include technology, pharmaceuticals, and renewable energy – you could start by looking into some of these.
Look for Opportunities
Once you have a clear understanding of some of Ireland’s general market and industry trends, start looking for investment opportunities. The Irish Stock Exchange is a good place to start for investing in Ireland’s best-known public companies, while venture capital firms, angel investors and ETF funds are better options for investing in higher-risk startups.
It is also important to look at company fundamentals like the profiles of their management team, their sales track record, and the company’s financial history (only readily available for public companies) before making an investment.
Keep an Eye on Economic Indicators
Keeping track of economic indicators such as inflation rates, interest rates, and consumer surveys can help you predict or analyse future consumer behaviour, identify stocks which might be promising in the future, and make more informed investment decisions.
The economic calendar can provide a comprehensive overview of when these indicators occur and help you stay on top of market trends before their impacts have taken hold on the market.
Diversify Your Portfolio
Diversification is key when it comes to investing in general, and this applies to investing in Irish markets and businesses as much as it does elsewhere. Spread your investments across different industries and companies to minimise risk and increase potential returns.
ETFs are a great option in diversifying as they are groups of similar types of stocks or shares, rather than a stake in a single stock. The broader your portfolio, driven by a clear overarching strategy is well advised and follows the strategy of many professional investment funds.
Seek Professional Advice
Seeking advice from financial advisors in Ireland can also help you navigate the legal and regulatory aspects of investing and ensure your investment is in compliance with Irish laws. In most cases, if your investments are small, this isn’t something to worry about too much, but if you’re looking to make substantial ventures there, speaking with an expert helps you avoid unfriendly capital gains taxation or tariffs on foreign investment.
Ireland, with its low corporation tax, is a super business-friendly place and attracts many great entrepreneurs to choose the nation as a home for their business. By understanding the market and industry trends, looking for investment opportunities, keeping track of economic indicators, diversifying your portfolio, and seeking professional advice, you can make informed investment decisions and enter one of Europe’s most respected, established and exciting markets.