Emerging market investments offer investors an opportunity to diversify their portfolio into companies based in rapidly growing economies. Emerging markets have younger, growing populations, and emerging middle classes with disposable income.
Emerging market investments offer higher growth potential than those in developed markets - but also come with greater risks. These risks include the potential for political and economic instability, and lower standards of governance, transparency and regulation. These risks can be mitigated through diversification.
The major investment opportunities are in companies exposed to the growing middle class, infrastructure development, and commodity exports. This collection includes companies in relevant sectors with preference given to companies that operate in several countries in Latin America.
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Simply Wall St analyst Richard Bowman and Simply Wall St have no position in any of the companies mentioned.