Equity funds investing in emerging markets are a good choice for investors seeking high returns from strongly growing markets. Countering the promising return potential, an investor needs to note that stock prices are typically much more volatile in the emerging markets than in the Western markets and that operating environments may be subject to various political risks.
Investing in emerging markets generally always implies higher risks than in investing in advanced markets. The fund's value may vary significantly depending on the market situation and the fund's value performance may differ from that of other comparable funds.
Emerging markets funds are excellent as part of a broader and diversified portfolio. They are suitable for return-seeking long-term investors and for those making monthly investments, and are a great element of an equity or balanced portfolio.