Why emerging markets?
Emerging markets typically pose higher risks for investors than western developed markets. They can sometimes be politically less stable and their standards of economic and social governance can be inconsistent.
The often higher economic growth rates of emerging markets, however, offer investors the potential for enhanced returns over the longer term. As they become more integrated into the global community, this can encourage emerging markets to increasingly adopt international standards, helping to potentially improve their investment performance even more.
The broad range of emerging market countries might be difficult to access if investing directly so a fund can be an effective way for you to diversify exposure and cut risks.
The benefits of using funds
If you feel that you do not have the time, knowledge or inclination to manage your own investment portfolio, you can delegate this to a professional manager by investing in a global emerging markets fund.
Even when investing a modest sum, you can generally gain greater exposure to far more financial assets than you otherwise would do if investing directly. Investing in emerging markets funds will usually involve taking on a certain degree of risk. Learn more about understanding your risk profile.
Liontrust Emerging Markets funds
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