investing in emerging markets?

eastmidsaver

Thrugelmir said:

Which fund do you hold? 

i have the JPM Emerging Markets fund.  i think it's about 7% of my portfolio at the moment.   

Thrugelmir

eastmidsaver said:

Thrugelmir said:

Which fund do you hold? 

i have the JPM Emerging Markets fund.  i think it's about 7% of my portfolio at the moment.   

With a high level of exposure to China, volatility is to be expected. One for the long term. Expect a bumpy ride. As the Chinese Government can change the rules whenever they like. 

eastmidsaver

Thrugelmir said:

With a high level of exposure to China, volatility is to be expected. One for the long term. Expect a bumpy ride. As the Chinese Government can change the rules whenever they like. 

yea,  i guess with anything you buy it should be long term, unless doing some portfolio rebalancing.   but i also own an Asia ex Japan fund in my SIPP which is having similar results....  but with that i plan to leave it for 10 years.

masonic

Linton said:

I do not believe "Emerging Markets" makes much sense as a coherent sector.  Many EM funds are typically 70% SE Asia so holding both EM and SE Asia implies a lot of duplication.  EM excluding SE Asia is better served in "Frontiers ". Though if one were to want a Frontier fund it would probably have to be too a small % to be worth it.

It does complement investments constrained to developed markets. I suppose an example would be VEVE + VFEM (or EMIM if you prefer the MSCI Index) as a cheaper alternative to VWRL.

Thrugelmir

eastmidsaver said:

Thrugelmir said:

With a high level of exposure to China, volatility is to be expected. One for the long term. Expect a bumpy ride. As the Chinese Government can change the rules whenever they like. 

yea,  i guess with anything you buy it should be long term, unless doing some portfolio rebalancing.   but i also own an Asia ex Japan fund in my SIPP which is having similar results....  but with that i plan to leave it for 10 years.

Nothing wrong in having assets that aren't correlated. View your portfolio as a whole. As long is there's a net gain .  A diversified portfolio is doing it's job. There'll always be somewhere better to have been invested with the benefit of hindsight. 

eastmidsaver

i was speaking to a friend about this.   he invested in a China fund which was returning him around 45%,   however it has now slipped down to about 15% .   wondering whether it now a potential buying opportunity.