Investors opt for single country emerging markets funds

Analysis from Fidelity FundsNetwork which compares the top ten Emerging Markets funds in 2002 with those in 2007, has revealed that investors are increasingly opting for Emerging Markets funds which focus on specific countries and regions over those which invest globally.

Since the beginning of the millennium, a number of Emerging Markets have started to mature and the economic development of certain countries has continued a pace. At the same time, demand for country and regional specific Emerging Market funds has grown and as a result the type of funds available to retail investors has increased.

The analysis reflects these trends - in 2002 there were only 24 Emerging Market funds available on the platform, compared to 52 funds available today. While funds investing across global Emerging Markets were popular in 2002, today more funds which focus on specific countries like China, India and Russia are making it into the top ten.

Rob Fisher, Head of Sales & Marketing, Fidelity FundsNetwork said: “While the backdrop to our analysis is that the popularity of Emerging Markets funds has grown steadily over the last five years, what is really interesting is the choice of fund that investors and advisers are now making.

“In the last five years Emerging Market funds and in particular more country-specific Emerging Market funds have become more readily available and investors are showing a keen interest in getting a piece of the action in countries such as India and Russia, where economic development is increasing rapidly."