If you are looking for inspiration for your next investment, you can learn something from successful fund managers. picture alliance / Zoonar | Matej Kaštelic
Emerging markets often show above-average growth compared to industrialized countries – investors expect high returns from this.
Business Insider analyzed which stocks make up several of Morningstar’s top-rated emerging market funds.
Anyone who invests their money in the stock market will sooner or later come across emerging market stocks. Emerging markets are markets that are in a phase between a developing country and an industrialized country. Compared to industrialized countries, they often show above-average growth. Investors expect a high return as a result.
However, the benefits are offset by risks such as economic and political uncertainty, volatility and exchange rate risks. Another argument in favor of investing in emerging markets is that they account for a large part of all global economic activity.
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Those looking for emerging market equities can get inspiration from successful funds
Many investors therefore opt for passive, broadly diversified investments in emerging market equities via ETF. For some investors, however, individual stocks are also a must-have. Investors looking to add emerging market equities to their portfolio can look to successful fund managers for inspiration.
How successful a fund is is shown not only by the return but also by analyst ratings. The analytics company Morningstar evaluates the performance of funds according to several criteria. While the star rating quantitatively assesses historical performance, the analyst rating is forward-looking and qualitative.
Business Insider looked at the five emerging market funds that Morningstar currently rates with both five-star and gold analyst ratings. Here are seven emerging market stocks featured by several of the funds:
1. Alibaba
WKN: A117ME
Industry: Electronic Commerce