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According to research, avoiding these markets now could mean a significant lost opportunity in the future.

Although volatility in emerging market equities is at an all time high, research from HSBC Global Asset Management has shown that it would pay to take a long-term view toward investing in this asset class, rather than trying to time the market.

Alex Tarver, global emerging product specialist at HSBC Global Asset Management, said the volatility of emerging markets is currently higher than it was earlier in 2000/02, when this sector was reeling from the Latin American crises and the bursting of the technology bubble.

The rising volatility makes the timing of entering or exiting the market very important. However, this is difficult to do effectively and avoiding this asset class even in the short-term can have a significant longer-term opportunity cost.

The research found that missing only a good few days over the past decade can have a dramatic negative impact on returns.

Over the 10-year period ending 13 November, investors' annualised returns would have been completely wiped off if they had missed the best 20 performing days of being invested in the MSCI Global Emerging Markets Index.

On the one hand, being fully invested over the full period would have resulted in an annualised return of 8.6 per cent in dollar terms. Whereas an investor who was absent from the market for just the top 20 days would be left with a negative annualised return of -1.00 per cent.

Missing even the top 10 days would have resulted in a substantially low annualised return of 2.2 per cent.

The opportunity cost is more extreme when considering single country exposure.

For example, being invested in Russia over the full 10-year period would have resulted in a 22.5 per cent annualised return, falling to minus 4.3 per cent if missing the best 20 days.

In Brazil, being invested for the full period would have led to an annualised gain of 16.0 per cent, compared to -5.1 per cent if out of the market for just the 20 best days.

Short-term risks remain due to concerns about slowing global growth and credit related issues, however, investors should take a longer-term view.

Emerging markets are also bearing the brunt of geopolitical concerns, inflationary pressures, weaker commodity prices, and a stronger US dollar.

Tarver said: "Over the medium and long term, emerging market fundamentals appear to remain sound. Corporate and sovereign balance sheets within some emerging markets are at their strongest in recent history.

"Emerging markets are characterised by a large, young population, expanding labour forces and high saving rates that will drive long term growth. Meanwhile, inflation concerns are ebbing due to a reduction in food and energy prices.

"While there is clear evidence that investors are shying away from emerging markets, this is probably one of the most attractive entry opportunities for investors with a medium to long term view. There volatility is likely to continue in the near term, but it pays to be fully invested rather than trying to time the market."