While some worry that the market is slowing down these days, others see emerging markets equity as the place for investment distinction. India in particular is an appealing location for investors today, with a growing GDP and new financial regulations. In a post-Brexit world, emerging markets continue to build international opportunities for the right investors.
Bill Ford, CEO of private investment firm General Atlantic, did an interview with ET News where he described emerging markets equity as “a very attractive environment.”
“We continue to believe that the economic growth prospects of most of the emerging market countries where we’re active—India, China, Southeast Asia, and Latin America—are extremely attractive. These economies are likely to grow at 5% or greater on average over the next 5-10 years,” Ford stated.
Just last week, emerging markets equity funds recorded an impressive $5 billion worth of inflows. But perhaps more impressive is the emerging markets actively managed funds, which topped $2.2 billion, making it the largest weekly inflow since February 2013.
Bloomberg reports reveal that emerging markets bond funds are beginning to see increased growth as well. Last week, emerging markets bond funds took in a whopping $1.7 billion. For comparison’s sake, this year alone, bond funds have recorded inflows of $18.3 billion. Meanwhile, emerging market equity funds have only taken in $8.6 billion inflows this year.
Market analysts cite political uncertainties, economic instability, and a recent string of terrorist attacks as the reasons why investors are moving on to foreign assets. But aside from troubles at home, research has shown that investors have better long-term results when they diversify their equities across multiple platforms. In fact, most experts agree that investing more than half of your assets into any single country is not a good idea.
Morgan Harting, a senior portfolio manager from AllianceBernstein, stated, “Sentiment is turning around for emerging equities, while valuations remain very low, and if you’re selective enough, this could be a good buying opportunity.”
