Emerging markets seem risky to many and investing in emerging markets for the purposes of building a nest egg for retirement may not be appealing. But the huge rates of returns makes international investing in these markets too lucrative to pass up. For example, in the article by Tim Mccarthy, author of the book The Safe Investor, on US news titled Don’t Be Scared of Emerging Markets states that BRIC nations (Brazil, Russia, India, China) accounted for only 3% of global GDP back in 2000, but by 2012, that group accounted for 1/5 of the world’s GDP. Investors hesitant or “scared” of the emerging market category are simply missing out on juicy returns. Read more of the article here.
(Based on the article “Will Your Clients Outlive Their Funds?” by Dan Kern Jan 2, 2014)
According to a study performed by Advisor Partners, an investment advisor based out of Walnut Creek California, there is a good chance that an investor will outlive their mutual funds. This research is based off mutual fund performance in connection with the yet to be released book The Safe Investor by Tim McCarthy (Palgrave Macmillan, Feb 2014). According to the research, mutual funds fail based on four reasons. Also, when a fund merges or liquidates, there is a transition cost that can be detrimental to a long term investor. Find out the four factors that affect why mutual funds fail and why it is better to leave a fund that is closing: http://www.fa-mag.com/news/will-your-clients-outlive-their-funds-16465.html