What do you mean by Emerging Markets?
Emerging markets are those that are rapidly expanding in size and scope, with the potential to be among the world's growth engines. MSCI, the world's largest index provider, has classed 25 international economies as emerging markets, including China, India, Indonesia, Korea, Brazil, Chile, Colombia, Russia, Saudi Arabia, South Africa, Turkey, and the United Arab Emirates.
What are some of the benefits of investing in emerging markets?
Emerging markets are those that are rapidly expanding in size and scope, with the potential to be among the world's growth engines. MSCI, the world's largest index provider, has classed 25 international economies as emerging markets, including China, India, Indonesia, Korea, Brazil, Chile, Colombia, Russia, Saudi Arabia, South Africa, Turkey, and the United Arab Emirates.
What are some of the benefits of investing in emerging markets?
Diversifying your portfolio by investing in emerging economies is a good idea. You'll also have the chance to invest in industries and themes that aren't available in India.
What is the best way for me to invest in these markets?
Emerging market funds are mutual funds that invest the majority of their assets in stocks, bonds, and other securities issued by nations categorized as emerging economies. These are either index funds or actively managed funds that invest in developing market assets such as those from India, China, Brazil, and South Africa.
What EM funds are available in India?
Edelweiss Emerging Markets Opportunities Equity Offshore Fund, HSBC Global Emerging Markets Fund, Kotak Global Emerging Markets Fund, and PGIM India Emerging Markets Equity Fund are the four emerging market funds available to domestic investors.
What are the potential dangers?
The volatility of emerging markets is higher than that of developed markets. EM funds are also subject to currency volatility, which means that your return will be determined not only by the price of securities but also by the value of your currency in relation to the currency of the market in which you have invested.
Is now a good time to invest?
Due to the epidemic and concerns about interest rate hikes, emerging market funds
performed poorly in 2021. These markets may experience some volatility as major global central banks worry about inflation and prepare to raise rates. Long-term investors, on the other hand, may see this as an opportunity.
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