Emerging Markets

Emerging markets can offer big opportunities for growth and help you diversify your investment portfolio. However there are risks involved.

Emerging Markets

Emerging markets can offer big opportunities for growth and help you diversify your investment portfolio. However there are risks involved.

What are emerging markets?

This phrase was coined in the 1980’s to describe investing in developing countries. Today the term is used to refer to investing in countries or regions that are undergoing rapid economic growth. A country’s GDP (gross domestic product) and per capita income is often used to determine if a country is an emerging market.

Brazil, India, and China are examples of developing economies that have seen massive growth over the last decade. Others, for example the Middle East, Africa and Southeast Asia are in the earlier stages of growth.

Advantages of investing in emerging markets

  • Offers the potential for high growth and high gains
  • Emerging markets can help to diversify a portfolio and offset downturns in established regions like the UK or the USA.

Advantages of investing in emerging markets

  • Offers the potential for high growth and high gains
  • Emerging markets can help to diversify a portfolio and offset downturns in established regions like the UK or the USA.

The risks of investing in emerging markets

  • Exposure to political instability which can seriously affect the economy and investors
  • Economic risks, including high inflation, unsound monetary policies and shortage of labour can jeopardise investments
  • Currency risks can affect investments, especially where the value of currency becomes volatile

Investing too late in an emerging market is potentially the biggest risk of all. since it can be costly to invest at the height of an economy that’s well on its way to becoming an economic powerhouse.

How to limit risk when investing in emerging markets

The secret to adding growth from emerging market investments is to limit the risks. Exchange traded funds (EFTs) are a good option because you can add an entire country or combination of countries to your portfolio. Blue-chip stocks can also offer reasonable exposure to emerging markets due to their global nature.

Your tolerance to risk will determine if investing in emerging markets suits your financial goals. Kingsmarque can assist you in identifying promising opportunities.

How to limit risk when investing in emerging markets

The secret to adding growth from emerging market investments is to limit the risks. Exchange traded funds (EFTs) are a good option because you can add an entire country or combination of countries to your portfolio. Blue-chip stocks can also offer reasonable exposure to emerging markets due to their global nature.

Your tolerance to risk will determine if investing in emerging markets suits your financial goals. Kingsmarque can assist you in identifying promising opportunities.

Expertise in emerging markets

Kingsmarque is well-versed in navigating the complexities of investing in emerging economies and understands the intricacies of emerging markets. We can offer you a clear perspective on the right investments to suit your investment objectives, and, using a combination of qualitative and quantitative criteria can help you determine the best countries, exchanges, and securities to consider, as well as the costs of accessing these markets.

Call for a chat to discuss whether and how emerging market investing could be right for you.

The value of your investments can go down as well as up, so you could get back less than you invested.

Past performance is not a reliable indicator of future performance.

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