Developed markets may have certainly experienced their fair share of rising rates and inflation over the past few years, but emerging markets still tend to be more susceptible to economic risks, such as high inflation, interest rate fluctuations, and debt defaults.
Despite this, several emerging markets have experienced rapid growth in recent decades.Â
Investing in emerging markets offers the opportunity to diversify away from more developed markets, and while historically they have been a source of capital growth, some emerging markets funds also offer income with the proportion of emerging market companies paying dividends growing significantly since the turn of the century.Â
Emerging markets are also becoming key to technological developments. Asia is home to some of the world’s great technological innovators. India is also set to be a dominant force, with a population that has surpassed that of China.Â
This report, which is worth 30 minutes of CPD, will explore how to approach emerging markets investing, how they fit into a portfolio and the impact of domestic and geopolitics.
