Economic growth in developed countries may be slow but still the interest of global investors has increased in the emerging markets, but behind this, what can be done behind it They are exploring investment opportunities in these markets. In the past six months, shares of emerging markets have performed better than 6% in developed markets.
As a result, the premium for developed markets compared to the emerging markets has dropped 25 percent from the average of 35 percent of the five years. Global fund houses are preparing their portfolio for lower growth rates and lower interest rates.
According to the Bank of America Merrill Lynch survey conducted between global fund managers, foreign fund managers are increasingly investing in emerging markets because they are anticipating a stagnation (not equal economic growth) in the developed markets.
From the beginning of this year, investors have invested $ 20 billion in exchange traded funds (ETFs) of emerging markets. Out of this, $ 7.5 billion has been invested in the Indian stock market, which is the highest in Asia. Due to this investment, major indices have achieved their new peak levels.
Global fund managers are also worried due to low returns in developed countries. That's why they are moving to the emerging markets. Significantly, in the past five years, developed countries had performed better than the emerging markets by 19.3%.
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As a result, the premium for developed markets compared to the emerging markets has dropped 25 percent from the average of 35 percent of the five years. Global fund houses are preparing their portfolio for lower growth rates and lower interest rates.
According to the Bank of America Merrill Lynch survey conducted between global fund managers, foreign fund managers are increasingly investing in emerging markets because they are anticipating a stagnation (not equal economic growth) in the developed markets.
From the beginning of this year, investors have invested $ 20 billion in exchange traded funds (ETFs) of emerging markets. Out of this, $ 7.5 billion has been invested in the Indian stock market, which is the highest in Asia. Due to this investment, major indices have achieved their new peak levels.
Global fund managers are also worried due to low returns in developed countries. That's why they are moving to the emerging markets. Significantly, in the past five years, developed countries had performed better than the emerging markets by 19.3%.
For regular updates on the stock market, please click on our Facebook page. Click here to like this page.
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