Financial Tunes

Are there mutual funds where I can invest in emerging markets?

I'm tired of having meager returns from my dow based mutual funds. Are there any mutual funds where I can invest in emerging markets (ie China, Brazil, Dubai)?

Public Comments

1. Yes http://www.usatoday.com/money/perfi/columnist/krantz/2006-10-11-emerging-markets_x.htm http://money.cnn.com/magazines/fortune/fortune_archive/1998/05/11/242058/index.htm
2. Absolutely. There are ETFs for Brazil and China and many other emerging markets as well as closed end funds selling at a discount to net asset value. Templeton has some good small company emerging markets and some frontier markets mutual funds, but they have loads. Fidelity has a good Southeast Asia fund. Last year the emerging market funds did well until the credit crisis hit. China is very tricky as it enjoyed a huge run up in its stock market, but is now facing increasing inflation and recent problems with the earthquake and the snowstorms over the winter. Obviously, it has a lot of growth ahead of it, but it could stumble at any time as the govt addresses the inflation problem. Same goes for any of the emerging markets. You have to buy them before they are discovered in the media. Brazil could be the exception as it is enjoying industrial growth because of its commodities (iron ore and oil) and its middle class is emerging as consumers. There are several known Brazilian stocks that trade on the NYSE, like Petrobras and Vale de Rio, which you could buy yourself. Other Brazilian publicly traded companies include a steel company, a water utility, telecom companies and beverage companies.
3. yes there are a BUNCH. Is there a certain company you are wanting to invest through so we could tell you better about THEIR emerging markets fund? http://biz.yahoo.com/p/tops/em.html
4. Yes - but be prepared for higher risk and volatility.
5. You can get a couple of good ones through Fidelity...FEMKX ( emerging mkts) and FLATX ( Latin America). You can also look to the ETFs: EEM or EEB I have been invested in them for a few years and have them in IRAs for my wife, daughters, and a couple of friends ( some this and some that ) Returns have been easily mid twenties for awhile...and good chance it will continue... and I agree with one other answer in that Brazil or Lat Am in general is currently the best play...but even the best will be scary at times... so, make a gradual change-over , 'til you get used to the volatility. ( Don't panic and sell the first time you get two, three days of loss...look at a two/three year chart...you'll see those scary " dips" all along the climb UP. Good luck.