An Investor's Guide to Emerging Markets

Emerging market investing brings its own unique set of challenges. This week we will examine the opportunities and risks offered by this group of countries

Emma Wall 10 July, 2017 | 9:29AM

Over the past five years, investors in developed markets have not had to look far for growth opportunities. Stock markets in the US, UK and Europe have delivered significant returns to equity investors – and even fixed income has performed well despite record low interest rates thanks to economic uncertainty.

But 2017 has seen an about turn in fortunes, with emerging markets outperforming developed ones year to date: The MSCI Emerging Markets index has beaten the global index over the past 18 months.

After such a strong run in developed markets, it is inevitable that valuations begin to look stretched, especially in the US. But will emerging markets provide a compelling alternative for investors looking for capital growth and income?

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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  is former Senior International Editor for Morningstar

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