A Look At The Best Emerging Market Funds Ideas

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By Cathy Mercer


The term emerging markets has a broad meaning as it covers all markets from big ones such as China and Brazil to the newest investment frontiers found in Africa. Investors are attracted by younger economies as well as greater growth, something that these markets have been consistently delivering over the past decade or so. Many investors feel that these markets funds are a vital part of their portfolio. One merit associated with them is the strong growth economies they provide are the most ideal long term bets that can be found in any place. Below are best emerging market funds ideas.

Fidelity New Markets Income, abbreviated as FNMIX, looks for high capital appreciation and current income. The fund typically invests more than 80% of assets in issuers securities within upcoming markets. It also invests in other investments that are economically tied to upcoming markets, while investing potentially in other securities types such as equity security for upcoming market issuers. This fund allocates investments across nations depending on the market size of each country in relation to markets size in nations that are as a whole considered upcoming markets.

EMGAX is another quite popular fund. Provision of capital growth for shareholders for the long term is their main investment objective. This fund is capable of investing over 80% of the assets it has equity securities for issuers that are located in upcoming markets. Countries that are considered emerging markets include China, Mexico, South Korea, Malaysia, South Africa, Taiwan and India. However, the markets are not restricted to just these nations.

EMGAX may invest in six or more countries, although it can also invest all its assets within a single country. The fund can invest in securities in all market capitalizations, and usually seek investments offering potential growth opportunities. All in all, the opportunities must be attributable to factors such as liberalized trade policy, political change and economic deregulation.

SITEX is a fund that seeks to maximize total returns. This fund invests more than 80 percent of its net assets in securities of fixed income for issuers of emerging markets. SITEX invests mainly in United States dollar denominated debt securities of corporate and government related issuers within emerging markets nations. It also includes entities that have been organized to restructure any outstanding debts of such issuers.

Aberdeen Indonesia Fund is a closed-end management, non diversified investment firm. Capital investment is its main investment objective, while the secondary objective is income that the firm seeks to achieve through investing mainly in Indonesian debt and equity securities. It will invest substantially in all its assets, at least 80 percent of its net assets in Indonesian debt and equity securities.

The remaining assets the fund has can be invested in non-Indonesian equity and debt securities of either corporate or government entities. The firm can also make investments in short term instruments for cash management purposes. It can invest up to 20% of its total assets in equity Indonesian securities that are not listed.

The above are some of the best emerging market funds ideas. It is worth bearing in mind that risk varies for each of them, and an overall markets fund is country, region or sector specific.




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