Should you invest in emerging markets?
Moneywise is hosting a live webchat today at 12.30pm covering everything you need to know about investing in the emerging markets.
Brazil, Russia, India and China - known as the BRIC countries - are steadily increasing their global economic presence. As these economies move out of the shadows, there is increasing talk of a future where the US no longer leads the world’s economy.
But what does this mean for investors? Should investors join the BRIC success story, and do the benefits of investing in emerging markets outweigh the risks?
Join the debate with Michael Konstantinov, fund manager of Allianz RCM BRIC Stars Fund and Darius McDermott, managing director of Chelsea Financial Services, live from 12.30pm on Friday 18 September 2009. Or submit your questions ahead of the webchat.
An individual employed by an institution to manage an investment fund (unit trust, investment trust, pension fund or hedge fund) to meet pre-determined objectives (usually to generate capital growth or maximise income) in prescribed geographic areas or investment sectors (such as UK smaller companies, technology or commodities). The manager also carries the responsibility for general fund supervision, as well as monitoring the daily trading activity and also developing investment strategies to manage the risk profile of the fund.
Generic, loosely-defined term for markets in a newly industrialised or Third World country that is in the process of moving from a closed economy to an open market economy while building accountability within the system. The World Bank recognises 28 countries as emerging markets, including Argentina, Brazil, China, Czech Republic, Egypt, India, Israel, Morocco, Russia and Venezuela. Because these countries carry additional political, economic and currency risks, investors in emerging markets should accept volatile returns. There is potential to make large profit at the risk of large losses.
An acronym, which stands for Brazil, Russia, India and China; countries all deemed to be at a similar stage of advanced economic development. The term was coined in 2001 in a report written by Goldman Sachs director Jim O’Neill who speculated that, by 2050, these four economies would be wealthier than most of the current major G7 economic powers.