Your Guide to Emerging Markets

SPECIAL REPORT: All this week, we are focusing on emerging markets, sharing their potential pitfalls – and where you can make a pretty penny

Emma Wall 11 June, 2018 | 7:25AM

Egypt emerging markets guide to developing economies education special report

Want to add a little spice to your portfolio? Have an appetite for risk which could deliver significant returns? Look to emerging markets.

Countries with low, middle, and upper-middle incomes per capita, relative to incomes in other countries around the globe, are classed as developing, or emerging. These economies may be starting from a lower base than developed countries such as the US, UK, Germany or France, but they are growing at a much faster rate.

Unlike developed countries, which are struggling to support an ageing population, emerging markets have younger, growing, populations. According to the CIA, the average age in the UK is 40.5 years, where in India it is 27.9 years. These demographics are supportive of economic growth, and the companies that leverage this trend.

Emerging markets have fast growing middle classes; thanks to urbanisation, technological advancements and a greater ratio of working population to dependents. These growing middle classes impact consumption, driving demand for aspirational items such as white goods, cars, holidays, cigarettes and alcohol – creating significant investment opportunities.

Increasingly, emerging market stocks are not just emulating the success of their developed market peers – but surpassing them. This is particular evident in the tech sector, where Chinese companies Tencent and Alibaba dwarf the revenues and earnings of the US tech giants. India is world leading in fintech, while Korea has long been a leader in tech hardware.

It is not just equities that emerging markets offer either. Bond yields in emerging markets are almost without exception significantly higher than those in developed markets. Risk is rewarded, with real returns not see in the UK and US in years.

All this week, we are focusing on emerging markets, sharing their potential pitfalls – and where you can make a pretty penny.

Monday: An Introduction

What is an emerging market? What is a frontier market? Who are the best investors?

What is an Emerging Market?

What is a Frontier Market?

Top 5 Emerging Market Funds

Star Emerging Markets Investor Mark Mobius vs a Tracker Fund

4 Top Rated Passive Emerging Market Funds

Tuesday: Emerging Europe

Russia, Eastern Europe and navigating the politics for profit

3 Top Emerging Europe Funds

World Cup Boost to be Shortlived for Russia

Expert Views: Emerging Europe

Booming Romania Set for Upgrade to Emerging Market

4 Top Rated Russia Funds

Why it Pays to Go Active When Investing in Russia

Banks to Profit from Growing Emerging Europe Wealth

Wednesday: The Americas

Latin America – more than just oil

5 Top Latin America Funds

Mexico: Trade, Politics and Profit

Investors Positive on Argentina Despite Political Climate

Antofagasta's ESG and Profitability Outlook Improves

Latin America Offers Opportunities to Bond Investors

BlackRock: Latin America Will Rally 20%

Thursday: Middle East and Africa

Where are the greatest opportunities in this fast-growing continent

5 Top Performing Middle East and Africa Funds

Ashmore Looks to Africa for Equity Gains

South Africa: Politics Look Positive But Risks Remain

Should Bond Investors Be Worried About South Africa?

Mark Mobius: We Will Be Investing in Iran in 10 Years

Friday: China and Asia

A guide to the world’s largest economy

Trump Hits China Innovation with $50bn Trade Tariff

Is Emerging Market Debt Still Attractive?

What Does Trump-Kim Summit Mean for Asia?

Profiting from China's Growing Middle Class

China Leads Emerging Market Returns

Fund Managers Embrace China Investment Opportunities

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Emma Wall

Emma Wall  is Senior International Editor for Morningstar