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Old 01-09-2006, 02:07 PM
Bubbagump Bubbagump is offline
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Join Date: Nov 2003
Location: Massachussetts
Posts: 374
Default Re: Investing in Emerging Markets

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Do you like India as an opportunity for large short term returns, or are you more interested in diversifying globally?

Many "experts" argue that India has a financial infrastructure that will be able to support more rapid economic growth than other "emerging" countries. Of course they could be wrong, although results have been pretty positive recently.


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I consider myself a long term investor. I am looking to put a percentage of my overall portfolio into either a fund or ETF that covers a broad range of global markets for diversification purposes. But I was also considering putting a small portion of that money into something that specifically covers India as a short-term speculative play.

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Another issue is how closely can you afford to manage your investment?

One advantage of using a general international or developing markets mutual fund is that the money will be actively monitered by the fund's management team. They will probably be more aware of the economic and political situations overseas than you can be, and will get out of certain countries or regions if things start to get ugly. Since emerging countries are generally more volatile than developed ones, this can be especially important.


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Good points. Right now I'm managing my portfolio pretty closely. Mainly because I'm new at this and am trying to learn as much as possible. That may change in the future. But I'm also fairly young (36) and am willing to accept a higher level of risk for a small percentage of my overall portfolio.
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