Question 1

What are emerging markets funds?

Accepted Answer

Funds that invest in companies listed in developing economies, such as China, India and Southeast Asia.

Question 2

Why are emerging markets riskier?

Accepted Answer

They carry political, regulatory, liquidity and currency risks, and their sharemarkets are typically more volatile than developed markets.

Question 3

Who should consider emerging markets funds?

Accepted Answer

Investors with a longer time horizon and higher risk tolerance seeking diversification and growth beyond developed markets.

Asian/Emerging Markets in Australia