The Irish stock market is a serious laggard on the world stage, according to new research. In a survey it ranked just 19th out of 38, in a ranking of markets and how they performed in the first six months of the year. It was down 3 per cent.

In contrast, the Chinese stock market is the place to invest if you want the best return on your money, according to the new survey by Merrill Lynch. It decided to carry out the survey, because, as it rightly points out, "many major stock markets are treading water at the moment, and some investors may want to take a look at some overseas bourses which are posting stronger rises".

The top performers were China, which rose 47 per cent over the first six months of this year; Canada which rose 20 per cent, Israel's bourse was up 13 per cent and the Polish stock market increased by 10 per cent.

"This listing demonstrates the importance of building an international diversified investment portfolio," said Mr Wintrop Smith, president of Merrill's international private client group.

"A properly diversified global portfolio can increase returns while also balancing risk," he pointed out. "However, many international markets have unique characteristics and therefore seeking professional advice and guidance is important for investors," he says.

Mr Smith points out that markets perform differently, due to their individual economic and political factors. "It is a matter of determining what those factors offer and balancing the opportunities with the practicalities," he says. "For instance, some of these markets are very volatile, while others do not allow direct foreign investment and others do not have enough liquidity."