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Investing in emerging markets can offer significant growth opportunities, but it also involves higher risks. Actively managed funds are a popular choice for investors seeking expert oversight and the potential for higher returns. This article highlights some of the best actively managed funds focused on emerging markets exposure.
Top Actively Managed Emerging Markets Funds
Choosing the right fund depends on your investment goals, risk tolerance, and time horizon. The following funds are recognized for their strong management teams, solid track records, and strategic focus on emerging markets.
1. Aberdeen Standard Emerging Markets Equity Fund
This fund is known for its diversified portfolio across various emerging economies. Managed by Aberdeen Standard, it emphasizes fundamental analysis and long-term growth potential.
2. T. Rowe Price Emerging Markets Stock Fund
With a focus on high-quality companies, this fund seeks to outperform its benchmark by investing in well-managed firms across Asia, Latin America, Eastern Europe, and Africa.
3. Fidelity Emerging Markets Fund
Fidelity’s fund offers a broad exposure to emerging markets, leveraging active management to identify undervalued stocks with strong growth prospects.
Factors to Consider When Choosing an Emerging Markets Fund
Investors should evaluate several factors before selecting a fund:
- Management team: Experienced managers with a successful track record.
- Fund performance: Consistent returns relative to benchmarks.
- Fees: Reasonable expense ratios to maximize net gains.
- Portfolio diversification: Exposure across countries and sectors.
Conclusion
Actively managed funds can be an effective way to gain exposure to emerging markets while benefiting from professional expertise. By carefully selecting funds with strong management, solid performance, and appropriate diversification, investors can position themselves for potential growth in these dynamic economies.