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Mr Collings said the short-term volatility of emerging markets does not equate to risk.

He said: "Short term volatility is more a function of portfolio flows from short-term foreign investors and speculators than an indication of fundamental risks.

"What is more, relative volatility within emerging markets has actually been trending lower for years, including during this crisis."

According to Mr Collings misconceptions about emerging markets are being made worse by a lack of knowledge and this was creating scepticism towards them.

He said the 5 per cent exposure to emerging markets within the majority of UK and US investors' portfolios "makes no sense".

Mr Collings said the risk for investors lay not in owning emerging markets but in not having enough exposure to them.

But Meera Patel, senior analyst of Bristol-based IFA Hargreaves Lansdown, said: "I would not say that emerging markets are no longer risky. I know volatility has come down if the Indian market goes up 17 per cent in one day. That is volatile to me.

"We are extremely bullish on the emerging market story, but we would not say to clients they are low risk."

She said weightings in investors' portfolios in emerging markets had increased from the 2 per cent to 3 per cent a decade ago.

She said nowadays she would tell clients that 10 per cent invested in emerging markets was "not a bad idea" as long as they were aware of the risks.