GenesysFund.com – on Investing in Emerging Markets

PORT VILA, VANUATU / ACCESSWIRE / November 16, 2017 / Over the past two decades, emerging markets (EM) have been a center of growth and innovation. Economic prospects have improved dramatically in many areas of the world, especially in key countries including China, India, and Brazil. Long-term investors have been rewarded for dedicating funds in these areas, as returns have often been far stronger than those produced in developed regions over the same period. Still, investing in emerging markets brings different risks, and choosing the right stocks and sectors requires an understanding of the different environments across the globe and the companies operating within them. GenesysFund.com, a comprehensive portfolio management solution provider, discusses the different methods of investing in the economies of emerging countries.

Hundreds of EM companies can be found and traded on U.S. stock markets including the New York Stock Exchange or the Nasdaq Stock Market. The most successful businesses typically make an effort to obtain a U.S. listing, both to improve liquidity and access to capital and as a symbol of pride, explained GensysFund.com. The advantage of investing solely in these companies is that they are required to provide financial disclosures under Securities and Exchange Commission rules, which dramatically increases their transparency. They also tend to be well established in their respective markets. The corresponding downside is that most of the fastest growing small businesses have not yet attained U.S. listed stocks. Direct investments that offer these ground floor opportunities can be difficult to access, however. Most brokers do not allow trading on foreign stock exchanges, and those that do often limit options to China (with a focus on the Hong Kong Stock Exchange), Mexico and India.

A more accessible option for many investors is exchange-traded funds (ETFs), of which there is a host that focus on emerging markets. Two of the most popular, the Vanguard FTSE and the iShares MSCI offer exposure to the entire EM universe, while others focus on specific companies or subgroups of EM stocks. Before choosing an ETF, it is important to understand which countries the fund managers consider as emerging markets, how the individual stock holdings are selected, and what fees are charged. In particular, investors should watch out for high concentrations in a small number of stocks, because many EM ETFs have market-capitalization weighting methodologies that can result in the biggest businesses accounting for a huge fraction of the fund’s overall assets. For those that are uncomfortable investing overseas, a simple way to gain exposure to emerging markets is through domestic companies that operate internationally. Many U.S. giants in the consumer goods industry have found new regions for their products, and at times when economic growth has been slow in the developed world, emerging markets have been an important, sometimes exclusive, source of profit gains.

Founded in 2016, the mission of GenesysFund.com is to provide investors with the most robust asset management offerings available on the globe. The word GeneSys, meaning “Generating Systems,” represents the company’s ability to look at the world objectively in order to source, thoroughly analyze, and decisively act upon high potential investment opportunities.

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GeneSys private fund: https://www.genesysfund.com

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SOURCE: GenesysFund

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